Slide 1: Albemarle Corporation Third Quarter 2021 Earnings
Albemarle Corporation Third Quarter 2021 Earnings Conference Call/Webcast Thursday, November 4, 2021 9:00am ET 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements – Some of the information presented in this presentation, the conference call and discussions that follow, including, without limitation, statements with respect to product development, market trends, price, expected growth and earnings, demand for our products, capital pr
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: Recent Accomplishments Support Long-term Growth
Recent Accomplishments Support Long-term Growth Q3 2021 net sales $831M, up 11% Y/Y; adj. EBITDA $218M, up 1% Y/Y Excluding FCS, Q3 2021 net sales up 19% Y/Y; adj. EBITDA up 14% Y/Y Increased FY 2021 guidance based on strong Q3 performance Announced acquisition agreement including a lithium conversi
Slide 5: Well-Positioned to Drive Sustainable Growth
Well-Positioned to Drive Sustainable Growth 2021 OBJECTIVES Updates • Complete LAN III/IV (mid-2021) and KEM I/II (late 2021) ✓ LAN III/IV construction complete Grow • Investment decisions on new expansion projects in Lithium and • Completion of KEM I YE ‘21; KEM II H2 ‘22 Profitably Bromine ✓ Annou
Slide 6: Delivering Wave 2 Lithium Expansions in 2022
Delivering Wave 2 Lithium Expansions in 2022 La Negra III / IV Kemerton I / II ▪ Conversion of low-cost, high-quality Chilean brine ▪ Conversion of low-cost, high-quality Australian spodumene ▪ 40ktpa nameplate capacity – lithium carbonate ▪ 50ktpa nameplate capacity – lithium hydroxide ▪ 100% owned
Slide 7: Progressing Wave 3 Conversion Capacity Expansions
Progressing Wave 3 Conversion Capacity Expansions Agreement to Acquire Guangxi Tianyuan New Energy Materials: Australia/Asia Resource & Conversion ▪ Conversion plant designed to produce 25ktpa LCE (Qinzhou) ▪ Potential to expand to 50ktpa JV Chengdu ▪ In commissioning; first sales expected H2 2022 W
Slide 8: Global Project Pipeline Offers Diversity, Scale & Optionality
Global Project Pipeline Offers Diversity, Scale & Optionality 2021 2022 2023 2024 2025 2026 Jordan • Expansion supports ability to leverage growing Tetrabrom V markets for electronics, telecom, automotive Chile • Salar Yield Improvement project supports La Negra’s Salar Yield growth with improved ef
Slide 9: Q3 2021 Financial Summary
Q3 2021 Financial Summary (in millions, except per share amounts) Q3 2021 Q3 2020 Variance Net Sales $831 $747 11% Net income attributable to Albemarle Corporation $(393) $98 -500% Adjusted EBITDA $218 $216 1% Adjusted EBITDA Margin 26% 29% Diluted EPS1 $(3.36) $0.92 465% Non-operating pension and O
Slide 10: Q3 2021 Adjusted EBITDA Bridge
Q3 2021 Adjusted EBITDA Bridge $250 216 25 218 5 1 4 $200 191 25 $150 +14% $100 $50 Q3 2020 FCS Impact Q3 2020 Lithium Bromine Catalysts FX Q3 2021 excluding FCS Specialties ex FX 10
Slide 11: Financial Flexibility to Execute Growth Strategy
Financial Flexibility to Execute Growth Strategy Net Debt to Adjusted EBITDA1 Selected Financial Metrics ($ in millions) (as of 9/30/2021) 3.4x 3.2x 2.5x Dividends Paid (TTM) $173 Target Long-term Dividend Growth (TTM Y/Y) 8.45% Leverage 1.7x 1.7x 2.0x Range Cash Balance $595 1.5x Gross Debt2 $2,022
Slide 12: Raising Full-Year 2021 Guidance
Raising Full-Year 2021 Guidance All businesses contributed to FY 2021 improved 2021 Guidance: Guidance ➢ Lithium and Bromine: Stronger Net Sales $3.3B – $3.4B pricing due to tight market conditions Adj. EBITDA $830M – $860M ➢ Catalyst: Higher-than-expected Adj. EBITDA Margin ~25 % joint venture inco
Slide 13: FY 2021: Improved Outlook Across our Businesses
FY 2021: Improved Outlook Across our Businesses As of November 4, 2021 • Lithium FY 2021 adj. EBITDA expected to be up mid- to high-teens Y/Y, up from previous guidance • FY 2021 volume growth expected to be up mid-teens Y/Y due primarily to higher tolling volumes • Average realized pricing expected
Slide 14: Clear Strategy to Accelerate Profitable Growth and Advance Sustainability
Clear Strategy to Accelerate Profitable Growth and Advance Sustainability Enhancing strategy execution and long-term value creating with focused operating model – the Albemarle Way of Excellence (AWE) Disciplined capital allocation priorities: accelerate profitable growth, maintain financial flexib
Slide 15: Lithium Overview
Lithium Overview As of November 4, 2021 YoY Q3 Performance Drivers Q3 2021 PERFORMANCE • Net sales increased 35% (price3 +5%, volume +30%); adjusted EBITDA up 28% ($M) Q3 2021 ΔQ3 2020 • Adjusted EBITDA benefited from higher net sales and higher volumes at Talison JV • Sales volumes increased primar
Slide 16: Catalysts Overview
Catalysts Overview As of November 4, 2021 YoY Q3 Performance Drivers Q3 2021 PERFORMANCE • Net sales down 2% (price3 -1%, volume -1%); adjusted EBITDA down 13% ($M) Q3 2021 ΔQ3 2020 • Adjusted EBITDA impacted by higher costs and lower sales, partially offset by higher- than-expected equity income Ne
Slide 17: Bromine Specialties Overview
Bromine Specialties Overview As of November 4, 2021 YoY Q3 Performance Drivers Q3 2021 PERFORMANCE • Net sales up 17% (price3 +17%, volume +0%); adjusted EBITDA up 8% ($M) Q3 2021 ΔQ3 2020 • Favorable pricing driven by robust demand and tight market conditions Net Sales • Increase in net sales parti
Slide 18: Q4 2021 Investor Relations Events
Q4 2021 Investor Relations Events Date Event – All Virtual November 8 Oppenheimer Fireside Chat November 10 Baird Global Industrial Conference December 1 Citi Basic Materials Virtual Conference December 9 Deutsche Bank Lithium and Battery Supply Chain Conference Meredith Bandy David Burke Katie Pyfe
Slide 19: Appendix: Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations
Slide 20: 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. Pro-forma Adjusted Net Income Net income attributable to Albemarle Corporation before non-recurri
Slide 21: Adjusted Net Income
Adjusted Net Income See above for a reconciliation of adjusted net income, the non-GAAP financial measures, to Net income attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with GAAP. 21
Slide 22: EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA See above for a reconciliation of EBITDA, adjusted EBITDA and the non-GAAP financial measures, to Net income attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with GAAP. 22
Slide 23: Adjusted EBITDA – by Segment (three months ended)
Adjusted EBITDA – by Segment (three months ended) See above for a reconciliation of adjusted EBITDA on a segment basis, the non-GAAP financial measure, to Net income attributable to Albemarle Corporation (“earnings”), the most directly comparable financial measure calculated and reporting in accorda
Slide 24: Adjusted EBITDA – Margin by Segment (three months ended)
Adjusted EBITDA – Margin by Segment (three months ended) See above for adjusted EBITDA margin, a non-GAAP financial measure defined as adjusted EBITDA divided by net sales. See previous slide for the related reconciliation of adjusted EBITDA on a segment basis, the non-GAAP financial measure, to Net
Slide 25: Adjusted EBITDA – by Segment (twelve months ended)
Adjusted EBITDA – by Segment (twelve months ended) See above for a reconciliation of adjusted EBITDA on a segment basis, the non-GAAP financial measures, to Net income attributable to Albemarle Corporation (“earnings”), the most directly comparable financial measure calculated and reporting in accor
Slide 26: Adjusted EBITDA supplemental
Adjusted EBITDA supplemental1 1 This supplemental is for net-debt-to-adjusted EBITDA ratio based on the bank covenant definition. 26
Slide 27: Diluted EPS
Diluted EPS 1Totals may not add due to rounding 27
Slide 28: Effective Tax Rate
Effective Tax Rate See above for a reconciliation of the adjusted effective income tax rate, the non-GAAP financial measure, to the effective income tax rate, the most directly comparable financial measure calculated and reporting in accordance with GAAP. 28
Slide 29: Equity Income and Noncontrolling Interest
Equity Income and Noncontrolling Interest Note: Corporate equity income relates to foreign exchange gains or losses of our Talison joint venture. 29
Slide 30: www.albemarle.com
\ ALBEMARLE’ NYSE www.albemarle.com