Albemarle Corporation · NYSE:ALB
Albemarle — BMO Capital Markets 2025 Global Metals, Mining & Critical Materials Conference
37 slides from Albemarle's conference presentation, February 2025
Slide 1: Albemarle Investor Presentation
Albemarle Investor Presentation February 2025 © 2025 by Albemarle Corporation. All Rights Reserved. | 1 1
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 income (loss) attributable to Albemarle Corporation, adjusted net income (loss) attributable to Albemarle Corporation common shareholders, adjusted diluted (loss) earnings per share attributable to common shareholders, non-operating pe
Slide 4: Leading the World in Transforming Essential Resources
Leading the World in Transforming Essential Resources FY 2024 Net Sales Albemarle by the Numbers1 Ketjen 19% Employees2 ~8,300 FY 2024 Net Sales $5.4B Customers ~1,900 FY 2024 Adj. EBITDA Margin3 ~21% Albemarle Energy Albemarle Storage Countries ~70 Production & R&D Facilities +25 Specialties 56% 25
Slide 5: Albemarle's Strategic Framework
Albemarle’s Strategic Framework Albemarle leads the world in transforming essential resources into the critical ingredients for modern living with people and planet in mind. Defining Our Performance Ambition Lead with Impact Purpose-Driven Growth Partner of Choice Stakeholder Value Providing Essenti
Slide 6: A Leading Provider of Lithium, Bromine and Other Essential Elements
A Leading Provider of Lithium, Bromine and Other Essential Elements MOBILITY ENERGY CONNECTIVITY HEALTH Advancing the future of Powering the energy Enabling an always-on Improving quality of life by movement by being a transition to meet the rising world to make technology making health safer and le
Slide 7: Harnessing Our Resilient Competitive Strengths to Navigate Market Conditions
Harnessing Our Resilient Competitive Strengths to Navigate Market Conditions ▪ Diverse global portfolio of world-class resources, with vertical integration World-Class Resources ▪ Access to multiple large-scale, high-grade lithium and bromine resources ▪ Deep technical and operational know-how to tr
Slide 8: Near-Term Market Is Dynamic, Long-Term Lithium Demand Drivers Intact
Near-Term Market Is Dynamic, Long-Term Lithium Demand Drivers Intact Supply Demand Lithium-ion Battery Pack Price3 500 ($/kilowatt-hour, real 2023) ▪ Recent additional supply curtailments both ▪ Lithium remains critical to the energy 2015-2030 450 upstream and downstream transition 400 ▪ EV registra
Slide 9: Our Strategic Framework is Unchanged; Adapting Execution
Our Strategic Framework is Unchanged; Adapting Execution Customer-Centric Innovation ▪ Developing next-generation polymeric flame retardants ▪ Optimizing conversion facilities to meet changing market needs at minimal capital expense Preserve Resource Advantage ▪ Salar Yield Improvement Project achie
Slide 10: Broad Set of Actions Underway to Maintain our Long-term Competitive Position
Broad Set of Actions Underway to Maintain our Long-term Competitive Position Optimizing Improving Reducing Enhancing Conversion Network Costs and Efficiency Capital Expenditures Financial Flexibility Actions • Significantly reduced footprint at • Announced proactive measures to • Re-phased capex to
Slide 11: Optimizing our Global Network
Optimizing our Global Network Project Developments Optimizing Leveraging High Flexible Global Portfolio Conversion Footprint Quality Resource Base of Conversion Assets Record production at La Negra in FY Preserving and maximizing the value of Extensive tolling network provides 2024 our advantaged, l
Slide 12: On Track to Realize $300-400M of Cost & Productivity Benefits
On Track to Realize $300-400M of Cost & Productivity Benefits Manufacturing Non-Manufacturing Cost Opportunity Cost Opportunity Establishing culture of Key levers Key levers continuous cost and productivity focus Cost reduction Operating structure Energy efficiency Fully functional model, Waste redu
Slide 13: Disciplined Capital Allocation to Maintain Core, Industry-Leading Assets & Resources
Disciplined Capital Allocation to Maintain Core, Industry-Leading Assets & Resources Driving Capital Expenditures Down >$800M Y/Y ▪ Further optimization of FY 2025E capital $2.5 Other Growth expenditures after detailed project review Conversion Growth $2.1B Resources $2.0 Sustaining and Productivity
Slide 14: A global leader with durable competitive strengths
A global leader with durable competitive strengths, including world-class assets, process chemistry expertise, deep innovation capabilities, a customer- centric market approach and responsible stewardship Strengthening our Capitalizing on long-term secular growth opportunities supporting the competi
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Slide 16: 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. 16
Slide 17: Albemarle's six core values
Care Curiosity Collaboration We improve the safety We continuously We work together, and support the well- learn and are value each other and Our Values being and resilience of comfortable taking encourage diverse our communities, informed risks to thought to drive better employees and innovate. out
Slide 18: Expanding Global Footprint – Strong Presence in Major Markets
Expanding Global Footprint – Strong Presence in Major Markets1 Langelsheim, Germany P Twinsburg, P Xinyu, OH, U.S. Kings Mountain, China P R New Johnsonville, NC, U.S. P TN, U.S. P P Meishan, Silver Peak, Baton Rouge, China P R P NV, U.S. P LA, U.S. P Qinzhou, Taichung, Magnolia, China P Taiwan P R
Slide 19: New Operating Structure Drives Agility, Cost-Out & Long-Term Competitiveness
New Operating Structure Drives Agility, Cost-Out & Long-Term Competitiveness Melissa Anderson Stacy Grant Netha Johnson Cynthia Lima Chief People and General Counsel, Chief Operations Officer Chief External Affairs and Transformation Officer Corporate Secretary and Communications Officer Leads globa
Slide 20: Engaged, Diverse, and Accountable Board of Directors
Updated from Proxy Engaged, Diverse, and Accountable Board of Directors C Racial Diversity1 C Hispanic White 10% 70% Kent Masters Jim O’Brien Laurie Brlas Ralf Cramer Glenda Minor Black Chairman & CEO, Former Chairman & Former EVP & CFO, Former President and Former SVP & CFO, 20% Albemarle CEO, Ashl
Slide 21: Our Financial and Operational Actions Have Provided the Flexibility to Navigate Dynamic Business Conditions
Our Financial and Operational Actions Have Provided the Flexibility to Navigate Dynamic Business Conditions Capital Structure1 Total Liquidity: $2.8B1 $100 Other Credit Lines $3,520 Total Debt ▪ ~$1.2B of cash & cash equivalents1 ▪ Full commercial paper capacity available for liquidity ($1.5B) $1,50
Slide 22: Strong Focus on Cash Improvements Yielding Results
Strong Focus on Cash Improvements Yielding Results ▪ FY 2025E operating cash conversion expected to be >80%, well above historical average1, driven by: Operating Cash Flow 1. $350M customer prepayment in Energy Storage secured in January Conversion1 >80% 2. Ongoing working capital improvements, incl
Slide 23: All the Elements for a Better World
All the Elements for a Better World New double materiality assessment Continued progress on environmental goals As a purpose-driven and values-led organization, sustainability Updates on DEI strategy and progress is core to who we are and how we operate, and this report is a demonstration of our ong
Slide 24: Double Materiality Assessment
Double Materiality Assessment New and updated topics identified through this assessment include: How sustainability issues impact Energy, Greenhouse Gas (GHG) Emissions and Climate our business and how our business Responsible Water Management impacts the world around us Environmental Pollution Mana
Slide 25: Our Focus on Sustainability Has Earned Recognition
Our Focus on Sustainability Has Earned Recognition ▪ In 2023, Albemarle received 10 ACC Responsible Care® Awards for health, safety and environmental areas of focus. ▪ 4th consecutive inclusion in the Bloomberg Gender-Equality Index. ▪ MercLok P-640, Albemarle’s mercury remediation solution, was nam
Slide 26: Lithium's Contribution to Reduced Automotive Life Cycle Emissions
Lithium’s Contribution to Reduced Automotive Life Cycle Emissions1 Life Cycle Avoided GHG Emissions Lithium’s Contribution (Avg EV Sedan, Based on 2023 Global Electric Grid) to GHG Emissions Lithium from EV Production 0.4 (CO2e tonnes) Cathode 2 34k km Battery breakeven point 4 Lifecycle Vehicle 11
Slide 27: Current Public Environmental Targets: GHG, Water, Air Quality
Current Public Environmental Targets: GHG, Water, Air Quality CURRENT GOAL S TAT U S GHG Grow our Energy Storage business in a scope 1 + 2 carbon-intensity neutral manner Ahead through 2030 (vs 2019) Reduce scope 1 + 2 carbon-intensity of Specialties by 35% by 2030 (vs 2019) in alignment On track on
Slide 28: 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 29: 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, Qinzhou, Kemerton, Mines Meishan Gree
Slide 30: 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 31: Access to Highly Concentrated Bromine
Access to Highly Concentrated Bromine Bromine Concentration2 (ppm) Dead Sea Concentrate Arkansas India Concentrate Albemarle operates from two world-class bromine China resources: Seawater 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 Arkansas, U.S. Highly integrated and specialty focused - drives
Slide 32: 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 33: Appendix: Non-GAAP Reconciliations
Appendix: Non-GAAP Reconciliations
Slide 34: 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 35: EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA hree onths Ended ear Ended December December 4 4 Net income (loss) attributable to Albemarle Corporation 5,29 (61 ,6 0) (1,1 9,449) 1,5 ,4 6 Add back: Interest and financing expenses 44, 0 4, 6 165,619 116,0 2 Income tax expense 10,61 11 , ,0 5 4 0,2 Depreciation and amort
Slide 36: Adjusted EBITDA supplemental
Adjusted EBITDA supplemental1 welve onths Ended hree onths Ended Dec 4 Dec 4 Sep 4 un 4 ar 4 Ad usted EBI DA 4 4 E uity in net income of unconsolidated investments (net of tax) (22,46 ) (4,9 2) (1, 92) ( , ) ( , 21) Dividends received from non Windfield oldings unconsolidated investments 24,264 10,5
Slide 37: www.albemarle.com
NYSE www.albemarle.com
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