Albemarle Corporation · NYSE:ALB
Albemarle — Goldman Sachs Chemicals Intensity Days Conference 2020
22 slides from Albemarle's conference presentation, Mar 24, 2020
Slide 1: Albemarle Corporation Investor Presentation
Albemarle Corporation Investor Presentation Goldman Sachs Chemicals Intensity Days Conference March 24th, 2020
Slide 2: Forward-Looking Statements
Forward-Looking Statements Some of the information presented in this presentation including, without limitation, information related to outlook and guidance, conversion capacity, production volumes, joint ventures, market trends, pricing, expected growth, earnings and demand for our products, tax ra
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: An Industry Leader with Significant Opportunity Ahead
An Industry Leader with Significant Opportunity Ahead 01 Industry-leading, competitively advantaged positions across our portfolio, which we believe will expand in the future 02 Strong secular trends support long-term growth 03 Focus on product quality, talent, low-cost operations, and effective man
Slide 5: Diversified Portfolio with Above-Market Margin
Diversified Portfolio with Above-Market Margin KEY STATS BUSINESS OVERVIEW 1887 Making the World Safe and Sustainable by Powering the Potential of People Founded 132 years Lithium Catalysts Bromine Specialties Global Employees1 ~5,600 Countries ~75 38% 30% 28% of Total of Total of Total Revenue Reve
Slide 6: Coronavirus Update
Coronavirus Update As of March 23, 2020 Business Area Current Assessment • To date, sites are operating without a material impact • Actively managing situation to protect employees and communities; established protocols for site entries; suspended all non-essential travel (international & local); wo
Slide 7: Lithium Snapshot
Lithium Snapshot Financials | TTM 2019 Applications $1.4B $525M 39% 20% Net Sales Adj. EBITDA1 Adj. EBITDA Margin1 20% 60% Segment Characteristics Business Environment • Leading market positions in Hydroxide, Carbonate, • Volume growth driven by energy storage Lithium Metal, and Organometallics • Hi
Slide 8: Lithium Strategy: Strong Foundation / Resilient to Market Dynamics
Lithium Strategy: Strong Foundation / Resilient to Market Dynamics Manage Expand Drive Cost and Sustain World’s Best Capacity with Operational Premium Value Resources Discipline Excellence Proposition • Spodumene capacity: 270 kTa • Reduced capital intensity • Lean, low-cost manufacturing • Long-ter
Slide 9: Technology Innovation: Spanning from Minerals to Market
Technology Innovation: Spanning from Minerals to Market Resources Conversion Derivatization Hydrogeology Process Chemistry Protect Environment & Optimize Utilization & Sustain Resource Tailor Product Quality Extraction Advanced Materials Maximize Lithium Create Customer Solutions & Recovery & Purity
Slide 10: Lithium-ion Battery - Reversible Storage of Electrical Energy
Lithium-ion Battery - Reversible Storage of Electrical Energy ̶ High-Energy State Low-Energy State + (charged) Li° Li (discharged) Separator allows ions but not electrons Lithium Ions Anode Cathode hosts Li in high- hosts Li in low- potential state potential state (e.g., graphite) (e.g., m
Slide 11: Continued Lithium Ion Battery Improvement Expected & Planned
Continued Lithium Ion Battery Improvement Expected & Planned Battery Pack Price [$/kWh] $100 / kWh Tipping Point 10,000 Albemarle EVs broadly reach purchase 2025 2018 2030 20% Forecast of price parity vs ICE before 2025 Learning Rate Production 1,000 $156 100 $80 $56 100x Internal Combustion Engine
Slide 12: Lithium Battery Technology Progression - Safer, Higher Energy, Faster Charge
Lithium Battery Technology Progression - Safer, Higher Energy, Faster Charge Legacy Advanced Next Frontier multi- solid lithium high cobalt microporous graphite higher nickel ceramic graphite valance separator metal compositions polymer compositions coatings thinner + silicon pre- LCO SEPARATOR lith
Slide 13: Lithium Ion Battery Performance Map
Lithium Ion Battery Performance Map Legacy Advanced Next Frontier Mature Commercial Early Commercial & Pipeline Breakthrough Potential established technology significant investment today accelerating intensity 100 C6/LCO Chemical Cost ($/kWh) 90 Li/LCO 80 C6/NCA anode/cathode 70 C6/NMC811 C6/NMC532
Slide 14: Lithium Use Evolves with Battery Technology Progression
Lithium Use Evolves with Battery Technology Progression Lithium Use-Intensity LITHIUM MATERIALS by Battery Component Legacy Advanced Next Frontier LiOH LiCl Anode Li2CO3 LiBr Electrolyte or Separator Li Metal Li2S Cathode First principle chemical models 2 ● ● used to estimate lithium use by Total Li
Slide 15: Albemarle Innovation on Both Sides of the Battery
Albemarle Innovation on Both Sides of the Battery Cathode Anode SEPARATOR CATHODE Advancements Advancements ANODE Lithium Carbonate and Lithium Hydroxide: • Novel pre-lithiation chemistry • Increased quality and purity • Revolutionary Lithium Metal anodes • Tuned particle size and morphology • LiBOB
Slide 16: Lithium Product Demand Mapped to Technology Forecast
Lithium Product Demand Mapped to Technology Forecast Technology Forecast Product Forecast Technology Scenarios cathode & anode advancements Cathode Advancements 1,000 Delayed Technology Maturation Advanced 800 Demand (kT LCE) 48 / 52 Legacy Today 600 25 / 75 LiOH Base Case + 400 Anode Advancements 6
Slide 17: Lithium: Our Growth Engine
Lithium: Our Growth Engine Key Takeaways • Broadest range of resources, manufacturing capabilities, products, and customer relationships in the Lithium industry • Global Lithium demand is on track to reach 1 million MT LCE by 2025, a 20%+ CAGR driven by EV penetration of new car sales • We anticipat
Slide 18: Appendix A: Non-GAAP Reconciliations and Supplemental Information
Appendix A Non-GAAP Reconciliations and Supplemental Information
Slide 19: EBITDA - by Segment (twelve months ended Dec 31)
EBITDA - by Segment (twelve months ended Dec 31) Bromine Reportable Consolidated ($ in thousands) Lithium Specialties Catalysts Segments Total All Other Corporate Total Year ended December 31, 2019: Net income (loss) attributable to Albemarle Corporation $ 341,767 $ 279,945 $ 219,686 $ 841,398 $ 41,
Slide 20: EBITDA - Margin by Segment (twelve months ended Dec 31)
EBITDA - Margin by Segment (twelve months ended Dec 31) Bromine Reportable Consolidated ($ in thousands) Lithium Specialties Catalysts Segments Total All Other Total Year ended December 31, 2019: Net sales $ 1,358,170 $ 1,004,216 $ 1,061,817 $ 3,424,203 $ 165,224 $ 3,589,427 Net income (loss) attrib
Slide 21: Adjusted EBITDA supplemental
Adjusted EBITDA supplemental1 Twelve Months ($ in thousands) Ended Three Months Ended Dec 31, 2019 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Adjusted EBITDA $ 1,036,781 $ 294,663 $ 254,351 $ 261,900 $ 225,867 Net income attributable to noncontrolling interests 71,129 15,852 16,548 20,772 1
Slide 22: www.albemarle.com
NYSE www.albemarle.com \ ALBEMARLE’
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