{ "docId": "019de518-1d8f-76cd-b17e-6f91d0e7021c", "docSlug": "b9820b9fc62acead8c9faa1f70272f1d", "documentTitle": "MP Materials | Results Presentation Deck | 19 slides", "authorId": "mp-materials", "authorName": "MP Materials", "documentKindSlug": "conference-presentation", "documentKindLabel": "Conference presentation", "sourceTypeSlug": "investor_relations", "sourceTypeLabel": "Investor relations", "presentationDate": "2024-02-01 00:00:00", "orientation": "landscape", "aspectRatio": 1.7777778, "pageNumber": 3, "pageCount": 19, "prevPage": 2, "nextPage": 4, "slideType": "disclaimer", "function": "establish_context", "density": "overcrowded", "nDataPoints": 1, "notes": null, "elementsJson": null, "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019de518-1d8f-76cd-b17e-6f91d0e7021c/3", "deckHref": "/decks/019de518-1d8f-76cd-b17e-6f91d0e7021c", "deckJsonHref": "/decks/019de518-1d8f-76cd-b17e-6f91d0e7021c.json", "deckAnchorHref": "/decks/019de518-1d8f-76cd-b17e-6f91d0e7021c#slide-3", "components": [ { "bbox": { "h": 0.02, "w": 0.101, "x": 0.86, "y": 0.936 }, "kind": "image", "text": "MP MATERIALS", "attrs": null, "subkind": "logo", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b88ff562-0378-4b37-b723-1f7cf08cd126", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.21, "w": 0.916, "x": 0.043, "y": 0.59 }, "kind": "paragraph", "text": "MP Materials' management uses Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income (Loss), and Adjusted Diluted EPS to compare MP Materials' performance to that of prior periods for trend analyses and for budgeting and planning purposes. MP Materials believes Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income (Loss), and Adjusted Diluted EPS provide useful information to management and investors regarding certain financial and business trends relating to MP Materials' financial condition and results of operations. MP Materials' management believes that the use of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income (Loss), and Adjusted Diluted EPS provides an additional tool for investors to use in evaluating projected operating results and trends. Furthermore, MP Materials believes Production Cost per REO MT, which utilizes the non-GAAP financial measure, Production Costs, is a key indicator of the Company's concentrate production efficiency. MP Materials also believes Realized Price per REO MT, which, for the year ended December 31, 2021, utilized the non-GAAP financial measure, Total Value Realized, is an important measure of the market price of the Company's concentrate product. As MP Materials continues to evolve as a business and transitions from production of rare earth concentrate to production of separated rare earth products, the metrics that management uses to evaluate the business may continue to change or be revised. For example, beginning with the first quarter of 2024, the Company will no longer present Production Cost per REO MT, which is a metric focused solely on Stage I concentrate operations, and consequently, Production Costs, since it will no longer be meaningful in evaluating and understanding the Company's business or operating results. MP Materials believes Free Cash Flow is useful for comparing the Company's ability to generate cash with that of its peers. Free Cash Flow is not meant to be considered in isolation or as an alternative to cash flows from operating activities and does not necessarily indicate whether cash flows will be sufficient to fund cash needs.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ad9acb0f-be53-4608-b92f-6c5862f070de", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.36, "w": 0.916, "x": 0.043, "y": 0.209 }, "kind": "paragraph", "text": "MP Materials defines Adjusted EBITDA as GAAP net income or loss before interest expense, net; income tax expense or benefit; and depreciation, depletion and amortization; further adjusted to eliminate the impact of stock-based compensation expense; initial start-up costs; transaction-related and other costs; accretion of asset retirement and environmental obligations; gain or loss on disposals of long-lived assets; certain write-downs of inventories; tariff rebates; and other income or loss. MP Materials defines Adjusted EBITDA Margin as our Adjusted EBITDA divided by our total revenue. MP Materials defines Adjusted Net Income (Loss) as GAAP net income or loss excluding the impact of stock-based compensation expense; initial start-up costs; transaction-related and other costs; gain or loss on disposals of long-lived assets; certain write-downs of inventories; tariff rebates; and other items that we do not consider representative of our underlying operations; adjusted to give effect to the income tax impact of such adjustments; and the release of valuation allowance. MP Materials defines Adjusted Diluted EPS as GAAP diluted earnings or loss per share (\"EPS\") excluding the per share impact, using adjusted diluted weighted-average shares outstanding as the denominator, of stock-based compensation expense; initial start-up costs; transaction-related and other costs; gain or loss on disposals of long-lived assets; certain write-downs of inventories; tariff rebates; and other items that we do not consider representative of our underlying operations; adjusted to give effect to the income tax impact of such adjustments; and the release of valuation allowance. Production Costs, which the Company uses to calculate its key performance indicator, Production Cost per REO MT, is defined as GAAP cost of sales (excluding depreciation, depletion and amortization), less stock-based compensation expense included in cost of sales, shipping and freight costs, and costs not attributable to concentrate sales, for a given period. Production Cost per REO MT is calculated as the quotient of: (i) our Production Costs for a given period and (ii) the REO Sales Volume for the same period. Total Value Realized, which the Company used to calculate its key performance indicator, Realized Price per REO MT, for the year ended December 31, 2021, is defined as GAAP rare earth concentrate sales adjusted for the revenue impact of tariff rebate related to prior period sales. MP Materials defines Free Cash Flow as net cash provided by operating activities less additions to property, plant and equipment, net of proceeds from government awards used for construction. You can find the reconciliation of these measures to the most directly comparable GAAP measures in the Appendix.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c943d88b-1a2e-452d-b324-6ed5f8529572", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.11, "w": 0.916, "x": 0.043, "y": 0.809 }, "kind": "paragraph", "text": "MP Materials' method of determining these non-GAAP measures may be different from other companies' methods and, therefore, may not be comparable to those used by other companies and MP Materials does not recommend the sole use of these non-GAAP measures to assess its financial performance. Management does not consider non-GAAP measures in isolation or as an alternative or to be superior to financial measures determined in accordance with GAAP. The principal limitation of non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in MP Materials' financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents reconciliations of such non-GAAP financial measures to the most directly comparable GAAP financial measures.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "dfec01d9-256c-4e91-b6d5-89175dac40dc", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.916, "x": 0.043, "y": 0.15 }, "kind": "paragraph", "text": "This presentation references certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income (Loss), Adjusted Diluted EPS, Production Costs, Total Value Realized, and Free Cash Flow, which have not been prepared in accordance with generally accepted accounting principles in the United States (\"GAAP\").", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e737920e-1e6c-4d48-87f8-1726185451cc", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.016, "w": 0.009, "x": 0.034, "y": 0.94 }, "kind": "source-note", "text": "3", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "427c2d04-9a34-47ef-8f66-ad05fd078b9f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.79, "x": 0.043, "y": 0.08 }, "kind": "title", "text": "Use of Non-GAAP Financial Measures", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ffe5946a-954d-4af4-aa85-014cd6c29381", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }