Albemarle Corporation · NYSE:ALB

Albemarle — Investor Presentation (December 2024)

39 slides from Albemarle's investor presentation, December 2024

1. Slide 1: Albemarle Investor Presentation

   Albemarle Investor Presentation December 2024

2. Slide 2: Forward-Looking Statements

   Forward-Looking Statements This presentation contains statements concerning our expectations, anticipations and beliefs regarding the future, which constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, wh

3. Slide 3: Non-GAAP Financial Measures

   Non-GAAP Financial Measures It should be noted that adjusted net (loss) income attributable to Albemarle Corporation, adjusted diluted earnings per share (“EPS”), non-operating pension and other post-employment benefit (“OPEB”) items per diluted share, non-recurring and other unusual items per dilut

4. Slide 4: Albemarle leads the world in transforming essential resources

   Albemarle leads the world in transforming essential resources into critical ingredients for mobility, energy, connectivity and health. We partner to pioneer new ways to move, power, connect and protect with people and planet in mind. We are committed to building a more resilient world. 4

5. Slide 5: Leading the World in Transforming Essential Resources

   Leading the World in Transforming Essential Resources Q3 2024 TTM Net Sales Albemarle by the Numbers1 Ketjen 17% Employees2 ~8,000 Q3 2024 TTM Net Sales $6.5B Customers ~1,900 Net Sales CAGR (2018-2023) >20% Albemarle Specialties Albemarle 20% Energy Countries ~70 Production & R&D Facilities +25 Sto

6. Slide 6: Attractive Diversification Across the Portfolio

   Attractive Diversification Across the Portfolio Energy Storage Specialties Ketjen One of the world’s largest producers of lithium for Diverse portfolio of highly specialized A leader in refining and petrochemical catalysts battery applications – including electric vehicles lithium and bromine soluti

7. Slide 7: Our Values

   Care Curiosity Collaboration We improve the safety We continuously We work together, and support the well- learn and are value each other and Our Values being and resilience of comfortable taking encourage diverse our communities, informed risks to thought to drive better employees and innovate. out

8. Slide 8: A Leading Provider of Lithium, Bromine and Other Essential Elements

   A Leading Provider of Lithium, Bromine and Other Essential Elements MOBILITY ENERGY CONNECTIVITY HEALTH Advancing the future of Powering the energy Enabling an always-on Improving quality of life by movement by being a transition to meet the rising world to make technology making health safer and le

9. Slide 9: Harnessing Our Resilient Competitive Strengths to Navigate Market Conditions

   Harnessing Our Resilient Competitive Strengths to Navigate Market Conditions  Diverse global portfolio of world-class resources, with vertical integration World-Class Resources  Access to multiple large-scale, high-grade lithium and bromine resources  Deep technical and operational know-how to tr

10. Slide 10: Albemarle's Strategic Framework

    Albemarle’s Strategic Framework Albemarle leads the world in transforming essential resources into the critical ingredients for modern living with people and planet in mind. Defining Our Performance Ambition Lead with Impact Purpose-Driven Growth Partner of Choice Stakeholder Value Providing Essenti

11. Slide 11: Expanding Global Footprint – Strong Presence in Major Markets

    Expanding Global Footprint – Strong Presence in Major Markets1 Langelsheim, Germany P Chengdu, Twinsburg, China P Xinyu, OH, U.S. P Kings Mountain, China P R New Johnsonville, NC, U.S. P TN, U.S. P P Meishan, Silver Peak, Baton Rouge, China P R P NV, U.S. P LA, U.S. P Qinzhou, Taichung, Magnolia, Ch

12. Slide 12: New Operating Structure Drives Agility, Cost-Out & Long-Term Competitiveness

    New Operating Structure Drives Agility, Cost-Out & Long-Term Competitiveness Melissa Anderson Stacy Grant Netha Johnson Cynthia Lima Chief People and General Counsel, Chief Operations Officer Chief External Affairs and Transformation Officer Corporate Secretary and Communications Officer Leads globa

13. Slide 13: Engaged, Diverse, and Accountable Board of Directors

    Engaged, Diverse, and Accountable Board of Directors C Racial Diversity1 C Hispanic White 10% 70% Kent Masters James O’Brien Laurie Brlas Ralf Cramer Glenda Minor Black Chairman & CEO, Former Chairman & Former EVP & CFO, Former President and Former SVP & CFO, 20% Albemarle CEO, Ashland Newmont Minin

14. Slide 14: Broad Set of Actions Underway to Maintain our Long-term Competitive Position

    Broad Set of Actions Underway to Maintain our Long-term Competitive Position Optimizing Improving Reducing Enhancing Conversion Network Costs and Efficiency Capital Expenditures Financial Flexibility Actions Taken • Ramped in-flight projects to deliver • In January, announced proactive • Re-phased c

15. Slide 15: Ongoing Cost Efforts Enhance Competitiveness and Flexibility

    Ongoing Cost Efforts Enhance Competitiveness and Flexibility January 2024 July 2024 October/November 2024 Initial actions to reduce cost Further asset and cost actions to Comprehensive review of cost and optimize cash flow enhance competitiveness and operating structure Capex reduction of On track S

16. Slide 16: Cost Structure Review Identified $300-400M of Cost Opportunity

    Cost Structure Review Identified Robust Benchmarking of $300-400M of Cost Opportunity Non-Manufacturing Cost Benchmarked vs. peers in lithium, Non-Manufacturing specialty chemicals and integrated Manufacturing Cost Opportunity extraction industries Cost Opportunity Key levers Key levers Cost savings

17. Slide 17: Disciplined Capital Allocation to Maintain Core, Industry-Leading Assets & Resources

    Disciplined Capital Allocation to Maintain Core, Industry-Leading Assets & Resources Driving Capital Expenditures Down >$800M Y/Y FY 2025E capital expenditures assume: $2.5 Other Growth Conversion Growth  Continuing critical health, safety, environmental $2.1B Resources and site maintenance project

18. Slide 18: Our Financial and Operational Actions Have Provided Flexibility

    Our Financial and Operational Actions Have Provided the Flexibility to Navigate Dynamic Business Conditions Capital Structure1 Total Liquidity: $3.4B1 $220 Other Credit Lines $3,570 Total Debt  ~$1.7B of cash & cash equivalents1 $1,500 Revolver  Full commercial paper capacity available for liquidi

19. Slide 19: All the Elements for a Better World

    All the Elements for a Better World New double materiality assessment Continued progress on environmental goals As a purpose-driven and values-led organization, sustainability Updates on DEI strategy and progress is core to who we are and how we operate, and this report is a demonstration of our ong

20. Slide 20: Double Materiality Assessment

    Double Materiality Assessment New and updated topics identified through this assessment include: How sustainability issues impact Energy, Greenhouse Gas (GHG) Emissions and Climate our business and how our business Responsible Water Management impacts the world around us Environmental Pollution Mana

21. Slide 21: Our Focus on Sustainability Has Earned Recognition

    Our Focus on Sustainability Has Earned Recognition  In 2023, Albemarle received 10 ACC Responsible Care® Awards for health, safety and environmental areas of focus.  4th consecutive inclusion in the Bloomberg Gender-Equality Index.  MercLok P-640, Albemarle’s mercury remediation solution, was nam

22. Slide 22: Continuing to Evolve our DEI Strategy

    Continuing to Evolve our DEI Strategy Major 2024 Initiatives Workforce Diversity Equitable Compensation Inclusive Workplace  Build strategies and  Evaluate pay equity on a  Increase DEI learning partnerships to attract regular basis participation applicants from all backgrounds  Develop pay tran

23. Slide 23: Committed to Creating a Culture of Engagement and Inclusiveness

    Committed to Creating a Culture of Engagement and Inclusiveness Global Gender Diversity Global Gender Diversity US Racial Diversity Director Level and Above Director Level and Above 25% 24% 24% 22% 21% 21% 22% 18% 17% 2021 2022 2023 2021 2022 2023 2021 2022 2023 2030 Industry Benchmarks Global gende

24. Slide 24: Lithium's Contribution to Reduced Automotive Life Cycle Emissions

    Lithium’s Contribution to Reduced Automotive Life Cycle Emissions1 Life Cycle Avoided GHG Emissions Lithium’s Contribution (Avg EV Sedan, Based on 2023 Global Electric Grid) to GHG Emissions Lithium from EV Production 0.4 (CO2e tonnes) Cathode 2 34k km Battery breakeven point 4 Lifecycle Vehicle 11

25. Slide 25: Current Public Environmental Targets: GHG, Water, Air Quality

    Current Public Environmental Targets: GHG, Water, Air Quality CURRENT GOAL S TAT U S GHG Grow our Energy Storage business in a scope 1 + 2 carbon-intensity neutral manner Ahead through 2030 (vs 2019) Reduce scope 1 + 2 carbon-intensity of Specialties by 35% by 2030 (vs 2019) in alignment On track on

26. Slide 26: A global leader with durable competitive strengths

    A global leader with durable competitive strengths, including world-class assets, process chemistry expertise, deep innovation capabilities, a customer- centric market approach and responsible stewardship Strengthening our Capitalizing on long-term secular growth opportunities supporting the competi

27. Slide 27: Leader in Lithium Processes

    Leader in Lithium Processes Continuous improvement through optimization, efficiency, technology advancements Resource Extraction Lithium Conversion Lithium Products Battery and Technical Grade Hard Rock 6% Li2O Concentrate Lithium Hydroxide 0.5- 2.5% Li2O Xinyu, Chengdu, Qinzhou, Mines Kemerton, Mei

28. Slide 28: Long-Term Lithium Demand Drivers Remain Intact

    Long-Term Lithium Lithium-ion Battery Pack Price1 Lithium Demand Demand Drivers ($/kilowatt-hour, real 2023) by Application2 (MMt LCE) Remain Intact 2015-2030 2024-2030 500 Demand 450 3.3  Projected lithium demand CAGR 400 of 15-20% from 2024 to 2030 350  Battery technology evolving for Global avg

29. Slide 29: Current Market Prices Are Well Below Re-Investment Economics

    Current Market Prices Are Well Below Re-Investment Economics Substantial part of the cost curve operating below breakeven 2030E Supply Unconstrained 3.2 MMT LCE 2030E Supply assuming ~$15/kg LCE in perpetuity 2.7 MMT LCE Cost-advantaged resources that Cost1 are profitable even at today’s market pric

30. Slide 30: Industry-Leading Technology Innovations from Mine to Market

    Industry-Leading Technology Innovations from Mine to Market Resource and Conversion Battery Materials Customer Alignment  Maximizing recovery at the  Developing differentiated  Breakthrough OEM wellhead, pond, and lithium for safer, higher opportunities for >50% more conversion stage, +>70 ktpa p

31. Slide 31: Access to Highly Concentrated Bromine

    Access to Highly Concentrated Bromine Bromine Concentration2 (ppm) Dead Sea Concentrate Arkansas Albemarle operates from two world-class bromine India Concentrate resources: China Seawater Arkansas, U.S. 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 Highly integrated and specialty focused - drives

32. Slide 32: Operational Discipline: Manufacturing Excellence & Capital Project Execution

    Operational Discipline: Track Record of Delivering Manufacturing Excellence & Innovative Expansion Capital Project Execution 2022 Plant Expansion - Magnolia, AR  On-time and on-budget expansion of the flagship fire safety  Dedicated Manufacturing Excellence solutions product line program (higher v

33. Slide 33: Competitive Capabilities: Diverse and Healthy New Product Pipeline

    Competitive Capabilities: Diverse and Healthy New Product Pipeline Research & Technology MercLok  Remediates mercury in contaminated soils and sediments New Product Innovation  Large market opportunity (~$200M in the US alone)  Multiple field pilots completed  Market research driven  Commercial

34. Slide 34: Appendix: Non-GAAP Reconciliations

    Appendix: Non-GAAP Reconciliations

35. Slide 35: Definitions of Non-GAAP Measures

    Definitions of Non-GAAP Measures NON-GAAP MEASURE DESCRIPTION Adjusted Net Income Net income attributable to Albemarle Corporation before non-recurring, other unusual and non-operating pension and OPEB. Adjusted Diluted EPS Diluted EPS before non-recurring, other unusual and non-operating pension an

36. Slide 36: EBITDA and Adjusted EBITDA

    EBITDA and Adjusted EBITDA Year Ended December 31, 2023 % of net ($ in thousands) $ sales Net income attributable to Albemarle Corporation $ 1,573,476 16.4 % Add back: Interest and financing expenses 116,072 1.2 % Income tax expense 430,277 4.5 % Depreciation and amortization 429,944 4.5 % EBITDA 2,

37. Slide 37: Adjusted EBITDA supplemental

    Adjusted EBITDA supplemental1 Twelve Months ($ in thousands) Ended Three Months Ended Sep 30, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Adjusted EBITDA $ 754,163 $ 211,498 $ 386,360 $ 291,236 $ (134,931) Equity in net income of non - Windfield Holdings unconsolidated investments (net

38. Slide 38: www.albemarle.com

    NYSE www.albemarle.com

39. Slide 39: Albemarle

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