Albemarle Corporation · NYSE:ALB
Albemarle — Loop Capital Markets' 5th Annual Investor Conference 2024
38 slides from Albemarle's conference presentation, Mar 13, 2024
Slide 1: Albemarle Investor Presentation
Albemarle Investor Presentation March 2024
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
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
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
Slide 5: Leading the World in Transforming Essential Resources
Leading the World in Transforming Essential Resources FY 2023 Net Sales Ketjen Albemarle by the Numbers1 FY 2023 Financial Highlights 11% Albemarle Employees2 ~9,000 Net Sales $9.6B Specialties 15% Customers ~1,900 Net Income3 $1.6B Countries ~70 Adj. EBITDA (ex. LCM)4 $3.4B Albemarle Energy Active
Slide 6: 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
Slide 7: 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, Richburg, China P NV, U.S. R SC, U.S. P P Qinzhou, Taichung, Baton Rouge, Chin
Slide 8: Diverse and Dedicated Leadership Team Focused on Delivering Shareholder Value
Diverse and Dedicated Leadership Team Focused on Delivering Shareholder Value Kent Masters Neal Sheorey Eric Norris Netha Johnson Chairman & CEO Chief Financial Officer President, Energy Storage President, Specialties Experience: 30+ years Experience: 20+ years Experience: 25+ years Experience: 25+
Slide 9: Engaged, Diverse, and Accountable Board of Directors
Engaged, Diverse, and Accountable Board of Directors Racial Diversity Black White 20% 70% Hispanic 10% Laurie Brlas Glenda Minor Ralf Cramer Diarmuid O’Connell Kent Masters Former EVP & CFO, Former SVP & CFO, Former President and CEO, Former VP, Corp & Chairman & CEO, Newmont Mining Evraz North Amer
Slide 10: Resilient Competitive Strengths to Navigate Market Conditions
Resilient Competitive Strengths to Navigate Market Conditions Diversified portfolio of best-in-class assets and resources around the globe World-Class Resources Low-cost position with vertical integration into large, high-grade resources Deep technical and operational know-how to transform ess
Slide 11: Adapting to Changing Market Conditions While Maintaining Growth
Adapting to Changing Market Conditions While Maintaining Growth Capital Portfolio Working Costs Expenditures Management Capital Re-phasing of large Reducing annualized Evaluating the sale of Harvesting cash from projects to focus on operating costs by non-core investments working capital of
Slide 12: Realigning Capital Allocation Priorities to Current Environment
Realigning Capital Allocation Priorities to Current Environment 1 High-Return Growth 2 Financial Flexibility 3 Shareholder Remuneration 4 Portfolio Management Strategically grow Committed to Continue to support our Pursue suite of organic Energy Storage and Investment Grade credit dividend;
Slide 13: Our Operating Model: How We Execute & Accelerate Our Strategy
Our Operating Model: How We Execute & Accelerate Our Strategy Significantly exceeded 2023 productivity target with over $300M in benefits On track to exceed $280M in productivity benefits in 2024: Manufacturing - target of $80M in 2024, via: The ─ Increased utilization, OEE1 improvements ─ Project
Slide 14: Strong Track Record of Financial and Operating Performance
Strong Track Record of Financial and Operating Performance Deliberate, transformational steps to position for growth (in billions) Sales Volumes (in ktpa LCE) Net Sales1 Adj. EBITDA & Margin1,2 Energy Storage Volumes $8.00 % Adj. EBITDA Margin $7.00 >500 $9.6 $6.00 $7.3 $5.00 $4.00 47% 35% $3.00 $3.
Slide 15: Committed to Maintaining Investment Grade Credit Rating
Committed to Maintaining Investment Grade Credit Rating1 Capital Structure Total Liquidity: $1.8B $890M cash and cash $100 Other Credit Lines Revolver and $620 equivalents Commercial Paper $4.2B total debt $4.2B Other Debt $3,550 Total Debt YE 2023 net debt to adjusted $880 Revolver EBITDA is
Slide 16: Upsized $2.0B Mandatory Convertible Preferred Offering on Strong Investor Demand
Upsized $2.0B Mandatory Convertible Preferred Offering on Strong Investor Demand Offering Details Offering Rationale • Capital infusion allows Albemarle to complete strategic high-return Securities Mandatory Convertible Preferred Stock growth projects, strengthen our competitive position, and ensure
Slide 17: Sustainability Framework Aligns with Strategy
Sustainability Framework Aligns with Strategy Sustainability is not just doing the right thing, but doing it the right way Natural Resource People, Workplace Management & Community Responsibly manage Build an inclusive and our use of resources diverse workplace and materials focused on safety, mutua
Slide 18: Current Public Environmental Targets: GHG, Water, Air Quality
Current Public Environmental Targets: GHG, Water, Air Quality STATUS Grow our Energy Storage in a scope 1 + 2 carbon-intensity neutral manner through 2030 (vs 2019) On track Reduce scope 1 + 2 carbon-intensity of Specialties by 35% by 2030 (vs 2019) in alignment with On track science-based targets G
Slide 19: Recent Announcements and Recognition
Recent Announcements and Recognition • Recognized by TIME as one of the 100 Most Influential Companies • Newsweek named Albemarle One of America’s Greatest Workplaces for Diversity • Named one of America’s 100 Most JUST Companies by JUST Capital and CNBC • First lithium producer to complete an indep
Slide 20: Strong value proposition
A global leader with vertical integration strength, world-class assets and a diversified product portfolio Capitalizing on long-term secular growth opportunities in the clean energy transition and beyond – mobility, connectivity, health Strong value proposition Taking action to preserve long-term gr
Slide 21: 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
Slide 22: Lithium Market Demand Outlook: 2.5x Growth 2024-2030
Lithium Market Demand Outlook: 2.5x Growth 2024-2030 Global EV Outlook Lithium Demand 2030E lithium demand down ~10% vs previous forecast due to: Battery Size (Global EV Average)1 Production / by Application2 OEM announcements (kWh per EV) Market Penetration1 (MMt LCE) 2024-2030 2024-2030 Modera
Slide 23: 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
Slide 24: Albemarle's Access to Large, High-Quality Lithium Assets Supports Our Low-Cost Position
Albemarle’s Access to Large, High-Quality Lithium Assets Supports Our Low-Cost Position Lithium Rock Operations1 Lithium Brine Operations1 2 2500 1.82 2,226 2000 Li Concentration (mg/L Li) 1.5 Li Grade (% Li2O) 0.9 - 1.2 1500 1 0.6 - 1.0 1000 0.5 300 - 600 400 - 450 500 0 0 Greenbushes2 Other Operat
Slide 25: Albemarle Energy Storage: Global Presence in Major Markets
Albemarle Energy Storage: Global Presence in Major Markets1 Growth investments focused on significantly progressed or near-completion projects Chengdu Kings Mountain, NC Silver Peak, NV Meishan Xinyu Magnolia, AR EU Mega-Flex Qinzhou Richburg, SC APAC Conversion La Negra 50% JV Salar de Wodgina Atac
Slide 26: Maintaining Strategy to Deliver Volumetric Growth
Maintaining Strategy to Deliver Volumetric Growth Expected Lithium Sales Volumes1 350 (kt LCE) MinRes Share Potential Tolling 300 Technical Grade Spodumene Assumes ~2 years to ramp a Lithium Carbonate +/- new conversion plant 250 Lithium Hydroxide Expected 2024 volume +/- Includes expansions at
Slide 27: 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
Slide 28: 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
Slide 29: 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
Slide 30: 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 (~$200M in the US alone) Multiple field pilots completed Market research driven Commercial
Slide 31: Attractive Diversification Across the Portfolio
Attractive Diversification Across the Portfolio Energy Storage Specialties Ketjen One of the world’s largest producers of lithium for Diverse portfolio of highly specialized A leader in refining and petrochemical catalysts battery applications – including electric vehicles lithium and bromine soluti
Slide 32: Appendix: Non-GAAP Reconciliations
Appendix: Non-GAAP Reconciliations
Slide 33: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures NON-GAAP MEASURE DESCRIPTION Adjusted Net Income Net income attributable to Albemarle Corporation before non-recurring, other unusual and non-operating pension and OPEB. Adjusted Diluted EPS Diluted EPS before non-recurring, other unusual and non-operating pension an
Slide 34: EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA Three Months Ended Year Ended December 31, December 31, ($ in thousands) 2023 2022 2023 2022 Net (loss) income attributable to Albemarle Corporation $ (617,680) $ 1,132,445 $ 1,573,476 $ 2,689,816 Add back: Interest and financing expenses 34,386 24,039 116,072 122,973 Inco
Slide 35: Adjusted EBITDA – Continuing Operations (twelve months ended)
Adjusted EBITDA – Continuing Operations (twelve months ended) Year ended December 31, ($ in thousands) 2019 2020 2021 2022 2023 Net income attributable to Albemarle Corporation $ 533,228 $ 375,764 $ 123,672 $ 2,689,816 $ 1,573,476 Depreciation and amortization 213,484 231,984 254,000 300,841 429,944
Slide 36: Adjusted EBITDA supplemental
Adjusted EBITDA supplemental1 Amended Credit Agreement Twelve Months ($ in thousands) Ended Three Months Ended Dec 31, 2023 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Adjusted EBITDA $ 2,766,285 $ (314,987) $ 453,287 $ 1,032,266 $ 1,595,719 Equity in net income of unconsolidated investments
Slide 37: www.albemarle.com
NYSE www.albemarle.com
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