Slide 1: Albemarle Corporation
Albemarle Corporation Benchmark Week 2020 - Lithium: The Keynotes December 10, 2020
Slide 2: Forward-Looking Statements
Forward-Looking Statements Some of the information presented in this presentation including, without limitation, statements with respect to product development, market trends, price, expected growth and earnings, demand for our products, capital projects, tax rates, stock repurchases, dividends, cas
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures It should be noted that Adjusted net income attributable to Albemarle Corporation (“Adjusted earnings”), Adjusted diluted earnings per share attributable to Albemarle Corporation, Adjusted effective income tax rates, segment operating profit, segment income, pro-forma net
Slide 4: Albemarle Lithium Powers the Potential of Electric Mobility
Albemarle Lithium Powers the Potential of Electric Mobility Broad range of Vertically integrated Focused on driving Lithium industry products with with access to brine low-cost operations, demand to reach leading positions in and spodumene sustainable 1 million MT LCE by lithium hydroxide, that are
Slide 5: Part of Albemarle, A Diversified Specialty Chemicals Company
Part of Albemarle, A Diversified Specialty Chemicals Company BUSINESS OVERVIEW KEY STATS Lithium Catalysts Bromine Specialties Founded 1887 132 years 37% 27% 29% Global Employees1 ~5,600 of Total Revenue of Total Revenue of Total Revenue Countries ~75 Dividend Payout Ratio2 42% ~20% ~3% ~2% Industry
Slide 6: Albemarle Lithium
Albemarle Lithium Financials | TTM Applications $1.2B $411M 34% 20% Net Sales Adj. EBITDA1 Adj. EBITDA Margin1 20% 60% Segment Characteristics Business Environment • Access to three of the largest, highest grade • Strong long-term demand growth expected resources in the world • Highly dynamic, emerg
Slide 7: World-Class Natural Resources with Potential for >4X Expansion
World-Class Natural Resources with Potential for >4X Expansion SALAR DE ATACAMA, CHILE GREENBUSHES, AUSTRALIA SILVER PEAK, NV, USA ✓ Geographically Diverse ✓ High Quality ✓ Large Scale WODGINA, AUSTRALIA ANTOFALLA, ARGENTINA ✓ Low Cost KINGS MOUNTAIN, NC, USA MAGNOLIA, AR USA * * Magnolia, AR is unc
Slide 8: Integrated Global Footprint for Lithium Chemical Conversion
Integrated Global Footprint for Lithium Chemical Conversion R C Conversion to Battery S Resources Specialties and Technical Grade HQ Kings Mountain, C C Langelsheim, NC, U.S. S S Germany Silver Peak, C S Taichung, NV, U.S. R Taiwan S R New Johnsonville, Wodgina, TN, U.S. Australia R C C C R Salar de
Slide 9: The Story of 2020: What Happened to Lithium Demand?
The Story of 2020: What Happened to Lithium Demand? • We expect demand to contract slightly • Yet, year-to-date EV sales through October are up 25% – stimulus efforts are positively impacting demand rebound • Lithium supply growth expected to lag EV rebound due to high channel stocks • 2021 IHS fore
Slide 10: Market Pricing Has Created a Challenge for Economic Supply
Market Pricing Has Created a Challenge for Economic Supply • Decrease in market pricing has created a challenge for economic supply Supply Requirements • 2020 spot market pricing has moved below marginal cash 2020 - 2025 costs – suppliers have reduced supply and deferred projects Double conversion •
Slide 11: Albemarle Has Disciplined Approach to Delivering Needed Capacity
Albemarle Has Disciplined Approach to Delivering Needed Capacity Albemarle’s current plan only utilizes ~60% of available resource capacity All figures in kT LCE and represent estimates of lithium nameplate conversion capacity Key Conversion Capacity Considerations • Proven processes, standardized d
Slide 12: AV ALBEMARLE’
AV ALBEMARLE’
Slide 13: Appendix A
Appendix A Non-GAAP Reconciliations and Supplemental Information
Slide 14: Adjusted EBITDA - Continuing Operations (twelve months ended)
Adjusted EBITDA - Continuing Operations (twelve months ended) Twelve Months Ended ($ in thousands) Sep 30, 2019 Dec 31, 2019 Mar 31, 2020 Jun 30, 2020 Sep 30, 2020 Net income attributable to Albemarle Corporation $ 572,433 $ 533,228 $ 506,863 $ 438,289 $ 381,520 Depreciation and amortization 206,905
Slide 15: Adjusted EBITDA - by Segment (twelve months ended)
Adjusted EBITDA - by Segment (twelve months ended) Twelve Months Ended ($ in thousands) Sep 30, 2019 Dec 31, 2019 Mar 31, 2020 Jun 30, 2020 Sep 30, 2020 Lithium Net income attributable to Albemarle Corporation $ 424,881 $ 341,766 $ 301,837 $ 250,572 $ 217,538 Depreciation and amortization 95,102 99,
Slide 16: www.albemarle.com
.\ ALBEMARLE’ NYSE www.albemarle.com 16