Slide 1: Albemarle Q4 2022 Earnings
Albemarle Q4 2022 Earnings February 16, 2023 9:00am ET
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation, conference call and discussions that follow contain statements concerning our expectations, anticipations, intentions, beliefs or strategies regarding the future, which constitute “forward-looking statements” within the meaning of the Private Securities
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: Delivering EBITDA Growth and Free Cash Flow in Q4
Delivering EBITDA Growth and Free Cash Flow in Q4 $2.6B +193% $1.2B +444% Q4 2022 NET SALES VS PRIOR YEAR Q4 2022 ADJ. EBITDA1 VS PRIOR YEAR ▪ Presented new 5-year outlook at 2023 Strategic Update on January 24 Introduced 2023 net sales ▪ Announced site for $180 million Albemarle Technology Park in
Slide 5: Q4 and FY 2022 Financial Summary
Q4 and FY 2022 Financial Summary (in millions, except per share amounts) Q4 2022 Q4 2021 Variance FY 2022 FY 2021 Variance Net Sales $2,621 $894 +193% $7,320 $3,328 +120% Net Income Attributable to Albemarle $1,132 -$4 NM $2,690 $124 +2075% Corporation Adjusted EBITDA1 $1,244 $229 +444% $3,476 $871
Slide 6: Q4 and FY 2022 Adjusted EBITDA Bridge
2022 Adjusted EBITDA1 Bridge ($ in millions) Q4 +444% Net of FX FY +299% 2 Net of FX Note: Numbers may not reconcile due to rounding. 1 See appendix for non-GAAP reconciliations. 2 Excluding FY2021 FCS adjusted EBITDA of $28M 6
Slide 7: Reiterating Full Year 2023 Guidance: Strong Growth Expected to Continue
Reiterating Full Year 2023 Guidance: Strong Growth Expected to Continue FY 2022 FY 2023 FY 2023 Guidance As of Feb 15, 2023 Guidance2 vs. FY 2022 Net Sales $7.3B $11.3B – $12.9B +55% - 75% Adjusted EBITDA1,2 $3.5B $4.2B – $5.1B +20% - 45% Adjusted EBITDA Margin1,2 47% 37% – 40% Adjusted Diluted EPS1
Slide 8: FY 2023: Outlook by GBU
FY 2023: Outlook by GBU As of February 15, 2023 • Net sales expected to increase Q/Q as volumes ramp • Adj. EBITDA expected evenly split 1H/2H • H1 margin normalization expected due to timing of spodumene cost and JV accounting impacts • Energy Storage FY 2023 adj. EBITDA expected to be up 20-50% Y/
Slide 9: Energy Storage Adjusted EBITDA Margin Bridge – 2022 vs 2023 forecast
Energy Storage Adjusted EBITDA Margin Bridge – 2022 vs 2023 forecast Talison JV Tax Impact 7% ~10% Pre-Tax Adj. EBITDA Margin ~20% ~5% 2-3% 8-10% EBITDA Margin 72% Pre-Tax Adj. 65% 54-57% 46-47% 2022 Adj. EBITDA Price Spodumene MARBL JV Acct'g Other 2023 Adj. EBITDA Margin1 Inventory Lag Margin Marg
Slide 10: Accelerated Growth Investments Supported by Strong Operating Cash Flow
Accelerated Growth Investments Supported by Strong Operating Cash Flow 5 From 2023 to 2027, capital expenditures are $4.0 - 4.4B expected to increase ~$2.4B, driven by: • Conversion: ~50% geographic shift from Capital Expenditures ($ billions) 4 primarily China to US, EU, and Australia; capital inte
Slide 11: China EV Demand Outlook Remains Robust
China EV Demand Outlook Remains Robust China is expected to produce ~2.5M more EVs in 2023 – Chinese EV sales typically rebound following subsidy reductions and COVID a Y/Y increase equivalent to ~2.5x US EV production in 2022 2 lockdowns; 1H seasonality due to Lunar New Year 2020-2022 EV Sales in C
Slide 12: Key Takeaways
Strong growth expected in 2023: net sales +55-75% YoY, adj. EBITDA +20- 45% YoY A global leader with world-class assets and a diversified product portfolio; long-term supply with reliable, consistent quality Key Capitalizing on tremendous growth opportunities in electric vehicles and Takeaways beyon
Slide 13: Q1 2023 Investor Relations Events
Q1 2023 Investor Relations Events Meredith Bandy, CFA VP, Investor Relations & Sustainability Feb 26 – Mar 1 BMO Critical Materials Conference meredith.bandy@albemarle.com +1 980.999.5168 Mar 27 – 30 JP Morgan Chile Site Tour Brook Wootton, IRC Senior Director, Investor Relations brook.wootton@albem
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Slide 15: Appendix: Non-GAAP Reconciliations
Appendix: Non-GAAP Reconciliations
Slide 16: 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 17: Adjusted Net Income
Adjusted Net Income Net income (loss) attributable to Albemarle Corporation 1,1 , ( , ) , 9, 1 1 , Add back Non operating pension and OPEB items (net of tax) ( ,1 ) ( , ) ( ,1 9) ( , 9) Non recurring and other unusual items (net of tax) ( , ) 1 ,1 ( 1, ) , Adjusted net income attributable to Albemar
Slide 18: EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA Net income (loss) attributable to Albemarle Corporation 1,1 , ( , ) , 9, 1 1 , Add back nterest and financing expenses , 9 , 1 ,9 1, ncome tax expense ,1 1 , 9 , 9, epreciation and amorti ation , 1 , , 1 , 1, ,1 , 1 , , 1 , 9 Non operating pension and OPEB items ( 1, ) ( ,
Slide 19: Adjusted EBITDA - (twelve months ended)
Adjusted EBITDA - (twelve months ended) Net income attributable to Albemarle Corporation , 9, 1 1, , , 1 1, 1 , epreciation and amorti ation , 1 , 1 , , 1 , Non recurring and other unusual items (excluding items associated with interest expense) , 1 1 , , , 9 1,19 nterest and financing expenses 1 ,9
Slide 20: Adjusted EBITDA supplemental
Adjusted EBITDA supplemental1 Adjusted EB T A of divested businesses ( , 1 ) ( ,99 ) ( 1, ) Net income attributable to noncontrolling interests 1 , 1 9, 1 ,991 , 19 ,1 Equity in net income of unconsolidated investments (net of tax) ( , ) ( , 99) ( , ) (1 ,1 ) ( , ) ividends received from unconsolida
Slide 21: Diluted EPS
Diluted EPS iluted earnings (loss) earnings per share 9. ( . ) . 1. Add back Non operating pension and OPEB items (net of tax) ( . ) ( . 1) ( . ) ( . ) Non recurring and other unusual items (net of tax) Restructuring and other . Acquisition and integration related costs . . .11 . Albemarle Foundatio
Slide 22: Effective Tax Rate
Effective Tax Rate As reported , 9 ,1 . Non recurring, other unusual and non operating pension and OPEB items ( , 9 ) 9 ,1 As adjusted , 9 11 , 1 . As reported ( , ) 1 , (1 . ) Non recurring, other unusual and non operating pension and OPEB items 1 ,9 1, As adjusted 1 ,9 , . As reported , , 9 , 1 .1
Slide 23: Equity Income and Noncontrolling Interest
Equity Income and Noncontrolling Interest Lithium , 9 9, , , 9 Bromine ( ,91 ) (1 , ) (1 ,9 ) ( , ) Catalysts ,1 1,9 , 9 Corporate (1 , ) ( 1) 1 1 9 , 9 ( ) ( , ) 1 Total Company , 99 ( 9, 1) , (1 , 9 ) , (1 , 1 ) 9 , ( , ) Note: Corporate equity income relates to foreign exchange gains or losses of
Slide 24: www.albemarle.com
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