Mr. Gervais Jacques reports

5N PLUS REPORTS 2023 THIRD QUARTER FINANCIAL RESULTS

5N Plus Inc. today released its financial results for the third quarter ended Sept. 30, 2023 (Q3 2023). All amounts in this press release are expressed in United States dollars unless otherwise stated.

"We are pleased with our results year to date. Our commitment to improve our consolidated product mix, coupled with the successful implementation of our commercial excellence program, is reflected in the significant year-to-date increases in adjusted EBITDA and adjusted gross margin, as well as our strong backlog. While a timing shift resulted in a softer quarterly adjusted EBITDA, we remain on track to meet our adjusted EBITDA targets for this fiscal year -- and next.

"As a leading supplier of ultrahigh-purity specialty semiconductor materials based outside of China, focused on cultivating long-term customer relationships, we are in a strong position heading into 2024, despite ongoing global uncertainty. The company will continue to benefit from sustained demand from critical sectors of the economy, such as terrestrial renewable energy and space solar power. With our capacity expansion projects on schedule, our investments will enable us to meet contracted demand as the partner of choice in the market," said Gervais Jacques, president and chief executive officer of 5N Plus.

Q3 2023 highlights

• Revenue in Q3 2023 reached $62.9-million, compared with $66.4-million for the same period last year. The slight decrease is primarily attributable to the company's exit from the manufacturing of extractive and catalytic products in the second half of 2022, largely compensated by increased demand in specialty semiconductors.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) in Q3 2023 was $9.6-million, compared with $9.1-million for the same period last year. Adjusted EBITDA was $29.3-million YTD 2023, compared with $23.3-million YTD 2022.
• Adjusted gross margin YTD 2023 was 29.1 per cent, compared with 22.9 per cent YTD 2022.
• On Sept. 30, 2023, the backlog represented 284 days of annualized revenue, five days lower than the previous quarter, and 92 days higher than the same period last year, primarily due to demand for terrestrial renewable energy and space solar power.
• Net debt stood at $78.6-million as at Sept. 30, 2023, compared with $78.3-million as at Dec. 31, 2022.

Logo and website refresh

5N Plus introduced a revamped corporate logo and website with a clearer and more contemporary appearance to represent the 5N Plus of today. Both now better reflect the company's growth strategy and focus on specialty semiconductors and performance materials for critical growth markets.

"As we have shifted away from being a commodity metals business over the past several years towards a more value-added company focused on commercial excellence, it is important from a customer and investor perspective to ensure that our brand image and our website accurately communicate our growth strategy and emphasis on technology and innovation," added Mr. Jacques.

Outlook

Management continues to expect demand to remain strong in both the terrestrial renewable energy and space solar power markets under specialty semiconductors and in the health and pharmaceutical sector under performance materials.

Management is maintaining its previously disclosed adjusted EBITDA guidance range of between $35-million and $40-million for FY 2023 and a projected adjusted EBITDA range of between $45-million and $50-million for FY 2024.

Conference call

5N Plus will host a conference call on Wednesday, Nov. 8, 2023, at 8 a.m. Eastern Time to discuss results of the third quarter for fiscal 2023. All interested parties are invited to participate in the live broadcast on the company's website.

To participate in the conference call:

• Toronto area: 416-764-8659;
• Toll-free: 1-888-664-6392;
• Enter access code: 21526233.

A replay of the conference call will be available two hours after the event and until Nov. 15, 2023. To access the recording, please dial 1-888-390-0541 and enter access code 526233.

About 5N Plus Inc.

5N Plus is a leading global producer of specialty semiconductors and performance materials. The company's ultrapure materials often form the core element of its customers' products. These customers rely on 5N Plus's products to enable performance and sustainability in their own products. 5N Plus deploys a range of proprietary and proven technologies to develop and manufacture its products. The company's products enable various applications in several key industries, including renewable energy, security, space, pharmaceutical, medical imaging and industrial. Headquartered in Montreal, Que., 5N Plus operates R&D (research and development), manufacturing and commercial centres in strategically located facilities around the world, including Europe, North America and Asia.

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