Albemarle Corporation · NYSE:ALB
Albemarle — Goldman Sachs Chemicals Intensity Days Conference 2021
22 slides from Albemarle's conference presentation, Mar 9, 2021
Slide 1: Albemarle Corporation Investor Presentation
Albemarle Corporation Investor Presentation Goldman Sachs Chemicals Intensity Days Conference March 9, 2021 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements Some of the information presented in this presentation, including, without limitation, statements with respect to product development, market trends, price, expected growth and earnings, demand for our products, capital projects, tax rates, stock repurchases, dividends, ca
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: Accelerating Growth to Create Value
Albemarle: Accelerating Growth to Create Value 1 Industry leading businesses that power a sustainable future 2 Invest in accelerating EV story through proven, integrated lithium player 3 Best-in-class resource and diversified asset base, with identified projects to drive growth 4 Industry-leading co
Slide 5: Diversified Portfolio with Above-Market Margin
Diversified Portfolio with Above-Market Margin BUSINESS OVERVIEW KEY STATS Making the World Safe and Sustainable by Powering the Potential of People Founded 1887 Lithium Catalysts Bromine Specialties 134 years Global Employees1 ~5,600 37% 26% 31% of Total of Total of Total Countries ~75 Revenue Reve
Slide 6: Clear Strategy Drives Sustainable Growth
Clear Strategy Drives Sustainable Growth Grow • Pursue profitable growth to align with customer demand Profitably • Build capabilities to accelerate lower capital intensity, higher return projects Maximize • Optimize earnings and cash flow generation across all of our businesses Productivity • Drive
Slide 7: Over 50% of Net Sales from Products that Enable Reduced GHG Emissions
>50% of Net Sales from Products that Enable Reduced GHG- emissions / Increased Resource Efficiency1 Applications2 Primary End-Market(s) Primary Driver(s) Energy ~60% Storage Automotive Grid Storage Electronics Electrification, EV Sales Consumer Spending ~20% Industrial Specialty Glass Lubricants Hea
Slide 8: Lithium Snapshot
Lithium Snapshot Financials | FY 2020 Applications2 $1.1B $393M 34% ~20% Net Sales Adj. EBITDA1 Adj. EBITDA Margin1 ~20% ~60% Segment Characteristics Business Environment • A leader in battery, industrial and specialty grade • Volume growth driven by energy storage lithium • Public policy accelerati
Slide 9: Lithium Enables the EV Revolution
Lithium Enables the EV Revolution Representative Lithium Ion Representative Battery Manufacturers Automotive OEMs Albemarle ~30% Battery Technology Evolution Future Next Frontier e.g., Li Metal Anode, Solid Separator, High Voltage Electrolyte Other ~70% Advanced Global Lithium Position1 e.g., NMC 53
Slide 10: Lithium Demand Fundamentals Supported by Regulatory Shifts and OEM Announcements
Lithium Demand Fundamentals Supported by Regulatory Environment Shifts and Recent OEM Announcements Vision of 3TWh battery production by 2030 …will invest $55bn in electrification...and other green energy and Announced Sep-2020 mobility services by 2025... looking to sell 560k EVs annually...by 2025
Slide 11: Strong Lithium Demand Driven by EVs
Strong Lithium Demand Driven by EVs Global EV Global EV Production / Lithium Demand Lithium Demand Sales by Year1 Market Penetration2 Projections3 by Application4 (mm units) (kt LCE) (kt LCE) Battery 2020 vs. 2019: 2020-2025 2020-2025 total: 3.0 2,000 CAGR: ~25% +45% CAGR: ~35% 92% 2,000 16.1% 2.5 1
Slide 12: Albemarle Lithium Demand Forecast Revised Upwards
Albemarle Lithium Demand Forecast Revised Upwards Lithium Demand by Application EV Penetration Battery Size 1,400 (ktpa LCE) (% of New Car Sales) (kWh per EV) 22% +31% >4x +28% 1,200 CAGR 1,140 20% 19% 60 18% 55 1,000 16% 50 14% 800 40 +47% 787 40 12% CAGR 600 10% 30 8% 400 20 292 6% 4.6% 113 4% 200
Slide 13: Investing to Align Capacity with Market Demand
Investing to Align Capacity with Market Demand Estimated Lithium Nameplate Conversion Capacity Wave 3 Potential Projects (3-5 years) Carbonate figures on kTpa LCE basis; hydroxide figures on kTpa LiOH basis ~$1.5B CapEx • China (MARBL) Wave 3 & Wave 4 could more than ~125-175 ~450-500 • Silver Peak,
Slide 14: New Investments Strategically Located and Complementary to Existing Footprint
New Investments are Strategically Located and Complementary to Existing Footprint Kings Mountain, Resources Wave 1 and 2 Projects1 North Carolina Conversion Wave 3 and 4 Projects2 Specialties Idle resources >2x resource to conversion capacity ~385 Silver Peak, Nevada Chengdu, China Xinyu, ~175 China
Slide 15: Conversion Facilities on Track for 2021 Completion
Conversion Facilities on Track for 2021 Completion La Negra III / IV Kemerton I / II New thermal evaporator significantly reduces fresh water intensity Kemerton site progress as of December 2020 • Conversion of low-cost, high-quality Chilean brine • Conversion of low-cost, high-quality Australian sp
Slide 16: Reduced Capital Intensity to Achieve Higher Returns
Reduced Capital Intensity to Achieve Higher Returns Illustrative Lithium Capital Intensity Range (Cost/kg) Expected Key Drivers of Cost Reduction ✓ Leverage expertise in large-scale project construction ~40% lower ✓ Take advantage of brownfield economics ✓ Projects in lower-cost jurisdictions (e.g.,
Slide 17: Leading the Way for Sustainable Lithium Production
Leading the Way for Sustainable Lithium Production • IRMA is the leading certification standard for assurance of responsible mining – Objective, independent third-party verification of industrial-scale mine sites – Comprehensive definition of responsible mining – Collaborative, multi-stakeholder pro
Slide 18: Well-Positioned to Drive Sustainable Growth
Well-Positioned to Drive Sustainable Growth 2021 OBJECTIVES Grow • Complete LAN III/IV (mid-2021) and Kemerton I/II (late-2021) Profitably • Investment decisions on new expansion projects in Lithium and Bromine • Achieve $75M productivity improvements versus 20201 Maximize • Preserve margins with be
Slide 19: Appendix: Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations
Slide 20: Adjusted EBITDA – (twelve months ended)
Adjusted EBITDA – (twelve months ended) See above for a reconciliation of adjusted EBITDA, the non-GAAP financial measures, to Net income attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with GAAP. 20
Slide 21: Adjusted EBITDA – by Segment (twelve months ended)
Adjusted EBITDA – by Segment (twelve months ended) See above for a reconciliation of adjusted EBITDA on a segment basis, the non-GAAP financial measures, to Net income attributable to Albemarle Corporation (“earnings”), the most directly comparable financial measure calculated and reporting in accor
Slide 22: www.albemarle.com
\ ALBEMARLE’ NYSE www.albemarle.com 22
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