Albemarle Corporation · NYSE:ALB
Albemarle — Credit Suisse 32nd Annual Basic Materials Conference (September 2019)
15 slides from Albemarle's conference presentation, Sep 11, 2019
Slide 1: Investor Presentation and Non-GAAP Reconciliations
Albemarle Corporation Investor Presentation and Non-GAAP Reconciliations September 2019
Slide 2: Forward-Looking Statements
Forward-Looking Statements Some of the information presented in this presentation, the earnings conference call and discussions that follow, including, without limitation, information related to outlook and guidance, conversion capacity, production volumes, proposed joint ventures, market trends, 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: Albemarle Snapshot
Albemarle Snapshot Founded 1887 Financial Highlights Twelve Months Ended June 30, 2019 Global Employees ~5,600 Net Sales $3.4B Net Income4 $547M Countries1 ~100 Adj. EBITDA $987M Dividend Yield2 2.3% Adj. EBITDA Margin 29% Net Sales by Segment Market Cap3 $6.7B Twelve Months Ended June 30, 2019 Lith
Slide 5: Leadership Across Businesses Is Driven By Core Strengths
Leadership Across Businesses Is Driven By Core Strengths Lithium Bromine Specialties Catalysts Global Ranking #1 #2 #2 Adj. EBITDA1 $516M $309M $268M Adj. EBITDA Margin1 42% 32% 25% Key Competitors Globally Diversified, Low Leading Technology and Cost Resources; Leading Globally Diversified, Low App
Slide 6: Albemarle 2019 Lithium Key Messages
Albemarle 2019 Lithium Key Messages 2019 Lithium demand is on track; EV sales up 39% and average battery size up 30% YTD1 Inventory built in 2018 expected to be worked off in 2020 Lithium market demand outlook continues to be 1,000 kt LCE by 2025 Reduce conversion capacity by approximately 125 kt LC
Slide 7: Energy Storage Continues to Drive Lithium Demand
Energy Storage Continues to Drive Lithium Demand Demand by Application 2018 ’18 – ’25 2025 kT LCE Total Lithium Market Demand (kT LCE) Estimate CAGR Forecast Albemarle Estimates 1,400 Electric Vehicles 70 36% 610 BEV & PHEV Other Mobility e-buses, e-trucks & other Energy 25 22% 100 1,200 Storage 201
Slide 8: Recent Lithium Mining and Conversion Delays
Recent Lithium Mining and Conversion Delays Pilbara Minerals: Lowered 3Q 2019 volume guidance, ended strategic partner process and slowed expansion plan1 ALiTa Resources: Announced default on loan due to mine plan & market conditions2, 3 Galaxy Resources: Ended formal strategic partnership process f
Slide 9: Current Conversion Capacity Plan
Current Conversion Capacity Plan All figures in kt LCE and represent estimates of lithium nameplate conversion capacity 350 Changes vs Q1 2019 300 • Reduce conversion capacity by 225 approximately 125 kt LCE and capital 250 expenditures by approximately $1.5 billion Hydroxide 175 20 over the next 5
Slide 10: Albemarle/MRL Joint Venture
Albemarle/MRL Joint Venture Structure1 Ownership ALB - 60% / MRL - 40% (mine and conversion) ALB pays $820M at closing and contributes Kemerton (50,000 MT) to JV. Payment ALB will not build third train now at Kemerton. Kemerton (50,000 MT) (2021 expected start-up) and another 50,000 MT Conversion Ca
Slide 11: Dividends and Cash from Operations
Dividends and Cash from Operations Dividends per Share Net Cash from Operations ($ in millions) 1.60 1000 1.20 800 600 0.80 400 0.40 200 0.00 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019E 2014 2015 2016 2017 2018
Slide 12: Disciplined Capital Allocation Strategy – Our Priorities
Disciplined Capital Allocation Strategy – Our Priorities Invest for Invest for Disciplined Fund Growth in M&A Strategy Dividend Growth, High Return • Must support or Growth Maintain Projects accelerate our strategy • Increase dividend annually: 25 • Strategically grow Flexibility Lithium consecutive
Slide 13: Albemarle Is Well Positioned to Maximize Long-Term Shareholder Value Creation
Albemarle Is Well Positioned to Maximize Long- Term Shareholder Value Creation 1 Actively managing our portfolios to a more focused and growth-oriented portfolio underpinned by energy efficiency macro drivers to drive shareholder value 2 Clear strategy with the people, cash generation and resources
Slide 14: Appendix A: Non-GAAP Reconciliations and Supplemental Information
Appendix A Non-GAAP Reconciliations and Supplemental Information
Slide 15: Adjusted EBITDA - (twelve months ended)
Adjusted EBITDA - (twelve months ended) Twelve Months Ended ($ in thousands) Jun 30, 2018 Sep 30, 2018 Dec 31, 2018 Mar 31, 2019 Jun 30, 2019 Net income attributable to Albemarle Corporation $ 334,525 $ 345,600 $ 693,562 $ 695,371 $ 547,108 Depreciation and amortization 203,540 203,352 200,698 199,6
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