Albemarle Corporation · NYSE:ALB
Albemarle — Barclays Electronic Chemicals Conference 2018
25 slides from Albemarle's conference presentation, May 8, 2018
Slide 1: Investor Presentation and Non-GAAP Reconciliations
Albemarle Corporation Investor Presentation and Non-GAAP Reconciliations May 2018
Slide 2: Forward-Looking Statements
Forward-Looking Statements Some of the information presented in this presentation, the webcast and discussions that follow, including, without limitation, statements with respect to product development, changes in productivity, market trends, price, expected growth and earnings, input costs, surchar
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 net income from continuing operations, Adjusted diluted earnings per share attributable to Albemarle Corporation, Adjusted diluted earnings per share from con
Slide 4: Albemarle Snapshot
Albemarle Snapshot Financial Highlights Trailing Twelve Months Ended March 31, 2018 Founded 1887 Net Sales $3.2B Global Employees ~5,400 Adj. EBITDA4,5 $923M Countries1 ~100 Adj. EBITDA Margin5,6 29% Dividend Yield2 1.3% Market Cap3 $11.2B Net Sales by Segment Trailing Twelve Months Ended March 31,
Slide 5: First Quarter 2018 Highlights – Delivering on Growth
First Quarter 2018 Highlights – Delivering on Growth TTM1 Net Sales ($ in millions) TTM1 Adj. EBITDA2 and ($ in millions) $1,000 Adj. EBITDA Margin2 30% $3,250 28% $900 $3,000 25% $800 $2,750 23% $700 20% $2,500 1Q17 2Q17 3Q17 4Q17 1Q18 2 1Q17 2Q17 3Q17 4Q17 1Q18 Adjusted EBITDA Adjusted EBITDA Marg
Slide 6: 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 TTM Adj. EBITDA1 $478M $260M $282M TTM Adj. EBITDA Margin1 43% 30% 26% Key Competitors Globally Diversified, Low Leading Technology and Cost Resources; Leading Globally Diversified,
Slide 7: Albemarle Path to Achieve Growth
Albemarle Path to Achieve Growth 2016 2021 Diversified Lithium Wave I & II: Expand current • 165,000 MT LCE annual capacity resources and BG conversion capacity specialty • New Lithium resources in chemical development with goal of 265,000 Lithium Wave III: Explore new resources MT LCE capacity mid-
Slide 8: Battery Markets Continue to Accelerate Lithium Demand
Battery Markets Continue to Accelerate Lithium Demand 2025 EV and Lithium Outlook1 Demand Buildup by Application 20% 2017 ’17 – ’25 2025 Applications Demand CAGR Demand Transportation 50 35% 550 ALB Outlook Consumer Electronics2 60 8% 110 15% All Other/Industrial 110 3 – 4% 140 EV Penetration Total
Slide 9: Long-term Relationships Required for EV Growth
Long-term Relationships Required for EV Growth Recent VW Announcement Lithium Producer Battery Manufacture Auto Manufacture Volume 140 kT LCE 150 GWh 3 Million EVs Expansion $2 – $3 billion $9 – $12 billion $20 – $25 billion Investment 3 – 5 year contracts with Standard Customer cathode manufactures
Slide 10: Albemarle the Partner of Choice in EV Battery Markets
Albemarle the Partner of Choice in EV Battery Markets Deep relationships Long-term Contracts Value-added Sale • Leading • Minimum volumes • Chemical, physical cathode/battery that escalate each and purity producers largely year characteristics based in Asia • Pricing floor with requiring specialized
Slide 11: Expanding Lithium Conversion Capacity in High Quality Resources
Expanding Lithium Conversion Capacity in High Quality Resources All figures in kt LCE and represent only lithium nameplate conversion capacity Hydroxide 265 60 Carbonate 40 Hydroxide 165 40 Carbonate 40 Hydroxide 65 20 2 2017 Nameplate Xinyu II La Negra III / IV Kemerton I / II Wave I Chile V / VI K
Slide 12: Disciplined Capital Allocation Strategy – Our Priorities
Disciplined Capital Allocation Strategy – Our Priorities Invest for Invest for Maintain Fund Growth in Investment Dividend Growth, High Return Grade Rating Growth Maintain Projects • Long-term Net • Increase dividend Debt to Adjusted annually: 24 • Strategically grow Flexibility Lithium EBITDA1,2 Ta
Slide 13: Continued Portfolio Assessment to Drive Value
Continued Portfolio Assessment to Drive Value 2014 2018 Acquired Rockwood (‘15) Acquired Jiangxi Jiangli New Materials (‘16) Entered high growth Chinese lithium conversion lithium market capacity Divested AOX (‘14) and Divested Minerals, Metal Divesting Polyolefin Catalysts exited Phosphorus (‘12) S
Slide 14: Albemarle Is Well Positioned to Maximize Long-Term Shareholder Value Creation
Albemarle Is Well Positioned to Maximize Long-Term Shareholder Value Creation 1 Multi-year journey has resulted in a more focused and growth-oriented portfolio underpinned by energy efficiency macro drivers 2 Clear strategy with the people, cash generation and resources necessary to ….execute the st
Slide 15: www.albemarle.com
‘\ ALBEMARLE’ NYSE www.albemarle.com 15
Slide 16: Appendix A: 2018 Guidance and Business Snapshots
Appendix A 2018 Guidance and Business Snapshots
Slide 17: Full Year 2018 Business Guidance vs 2017
Full Year 2018 Business Guidance vs 2017 Prior Updated GBU Business Environment Outlook Outlook • FY 2018 Adj. EBITDA1 expected to increase by greater than 20% compared to 2017 • Expect 1H 2018 to be similar to 2H 2018 with 3Q 2018 lower due to La Negra II tie-in Lithium • Favorable outlook driven b
Slide 18: Lithium Snapshot
Lithium Snapshot TTM Financials Characteristics Twelve Months Ended March 31, 2018 • Mining and specialty chemicals capability Net Sales $1,101M • Vertically integrated from natural resource to Adj. EBITDA1 $478M specialty performance products Adj. EBITDA Margin1 43% • Low cost position globally App
Slide 19: Bromine Specialties Snapshot
Bromine Specialties Snapshot TTM Financials Characteristics Twelve Months Ended March 31, 2018 • Mineral extraction and processing Net Sales $862M • Low-cost position on global cost curve Adj. EBITDA1 $260M • Vertically integrated Adj. EBITDA Margin1 30% • Stable and sustainable cash flow Applicatio
Slide 20: Catalysts Snapshot
Catalysts Snapshot TTM Financials Characteristics Twelve Months Ended March 31, 2018 • Leading positions in FCC and HPC catalysts Net Sales $1,075M • Technology and applications knowledge • Focused on value creation for refiners Adj. EBITDA1 $282M • Long-term, collaborative customer relationships Ad
Slide 21: Appendix B: Non-GAAP Reconciliations and Supplemental Information
Appendix B Non-GAAP Reconciliations and Supplemental Information
Slide 22: Adjusted EBITDA - by Segment (three months ended March 31)
Adjusted EBITDA - by Segment (three months ended March 31) Reportable ($ in thousands) Lithium Bromine Specialties Catalysts Segments Total All Other Corporate Consolidated Total Three months ended March 31, 2018: Net income (loss) attributable to Albemarle Corporation $ 108,334 $ 59,536 $ 55,660 $
Slide 23: Adjusted EBITDA - Margin by Segment (three months ended March 31)
Adjusted EBITDA - Margin by Segment (three months ended March 31) Reportable ($ in thousands) Lithium Bromine Specialties Catalysts Segments Total All Other Consolidated Total Three months ended March 31, 2018: Net sales $ 298,032 $ 225,639 $ 260,717 $ 784,388 $ 37,165 $ 821,629 Net income (loss) at
Slide 24: Adjusted EBITDA - Continuing Operations (twelve months ended)
Adjusted EBITDA - Continuing Operations (twelve months ended) Twelve Months Ended ($ in thousands) Mar 31, 2017 Jun 30, 2017 Sep 30, 2017 Dec 31, 2017 Mar 31, 2018 Continuing Operations Net income attributable to Albemarle Corporation $ 466,702 $ 884,856 $ 875,306 $ 54,850 $ 135,397 Depreciation and
Slide 25: Adjusted EBITDA - by Segment (twelve months ended)
Adjusted EBITDA - by Segment (twelve months ended) Twelve Months Ended ($ in thousands) Mar 31, 2017 Jun 30, 2017 Sep 30, 2017 Dec 31, 2017 Mar 31, 2018 Lithium Net income attributable to Albemarle Corporation $ 232,120 $ 271,810 $ 314,707 $ 342,992 $ 373,712 Depreciation and amortization 86,439 85,
Albemarle — Barclays Electronic Chemicals Conference 2018 on 6ix