Q4 2022 Earnings Presentation

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Liventus logo
Liventus

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Industrial

Published

2023

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#1#2Safe Harbor Statement Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements in this earnings presentation are forward-looking statements. In some cases, we have identified forward-looking statements by such words or phrases as "will likely result," "is confident that," "expect," "expects," "should," "could," "may," "will continue to," "believe," "believes," "anticipates," "predicts," "forecasts," "estimates," "projects," "potential," "intends" or similar expressions identifying "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including the negative of those words and phrases. These forward-looking statements, which are subject to risks, uncertainties and assumptions about Livent, may include projections of Livent's future financial performance, Livent's anticipated growth strategies and anticipated trends in Livent's business, including without limitation, our capital expansion plans and development of the Nemaska project. Such forward-looking statements are based on our current views and assumptions regarding future events, future business conditions and the outlook for the Company based on currently available information. There are important factors that could cause Livent's actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements. including a decline in the growth in demand for electric vehicles using high performance lithium compounds; constraints for EV assemblies and lithium-ion battery manufacturing such as restrictions on access to semiconductor chips and availability of other raw materials could indirectly impact lithium demand; increased supply chain disruptions in the electric vehicle manufacturing industry; risks relating to Livent's capacity expansion efforts and current production; not having established proven or probable mineral reserves, as defined by the Securities and Exchange Commission; difficulty integrating future acquisitions; the success of Livent's research and development efforts; volatility in the price for performance lithium compounds or other battery materials, and the risk that increasing prices become demand destructive in our key end markets (as the principal driver of our higher guidance range is higher expected realized pricing); adverse global economic and weather conditions that may result in adverse impact on supply chains and customer demand, including a global recession or regional recessions; competition; the potential development and adoption of battery technologies that do not rely on performance lithium compounds as an input or that require a lesser amount of performance lithium compounds; quarterly and annual fluctuations of our operating results; liquidity and access to credit; the conditional conversion feature of the 2025 Notes; the lack of sufficient cash flow from our business to pay our debt; risks inherent in international operations and sales, including political, financial and operational risks specific to Argentina, China and other countries where Livent has active operations; the effects of war, such as the conflict in Ukraine; physical risks to our operations and those of our suppliers, including natural disasters, epidemics, pandemics and other catastrophic events; the COVID-19 pandemic and its consequences; reduced customer demand, or delays in growth of customer demand, for higher performance lithium compounds; customer concentration and the delay or loss of, or significant reduction in orders from, large customers; failure to satisfy customer and government quality standards; increases in the price of energy and raw materials or broader global inflationary pressures; employee attraction and retention; union relations; cybersecurity breaches; our ability to protect our intellectual property rights; risks related to our business partners not operating in accordance with their business plans and failing to fulfill their obligations; risks related to whether the information in our feasibility studies is current; ESG risks, including events outside our control that could prevent us from achieving our sustainability goals; legal and regulatory proceedings; including any shareholder lawsuits; compliance with environmental, health and safety laws; changes in tax laws; risks related to ownership of our common stock, including price fluctuations and lack of dividends; as well as the other factors described under the caption entitled "Risk Factors" in Livent's 2021 Form 10-K filed with the Securities and Exchange Commission on February 28, 2022 and our subsequent Forms 10-Q filed with the Securities and Exchange Commission. Although Livent believes the expectations reflected in the forward-looking statements are reasonable, Livent cannot guarantee future results, level of activity, performance or achievements. Moreover, neither Livent nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. Livent is under no duty to update any of these forward-looking statements after the date of this news release to conform its prior statements to actual results or revised expectations. Non-GAAP Financial Terms In these slides, Livent uses the financial measures Adjusted EBITDA, adjusted EPS and adjusted cash from operations. These terms are not calculated in accordance with generally accepted accounting principles (GAAP). Definitions of these terms, as well as a reconciliation to the most directly comparable financial measure calculated and presented in accordance with GAAP, are provided on our website ir.livent.com. 2#3#4Livent Reported Financial Results Revenue GAAP Net Income (Loss) Adjusted EBITDA (¹) GAAP EPS Adjusted EPS (¹) Q4 2022 Q3 2022 $219 $83 $108 39¢ 40¢ $232 $78 $111 37¢ 41¢ Q4 QoQ Down 5% Up 7% Down 3% Up 5% Down 2% Q4 2021 $123 $8 $28 4¢ 8¢ YoY Up 79% Up 1,003% Up 291% Up 875% Up 400% FY 2022 $813 $274 $367 $1.36 $1.40 Full Year FY 2021 $420 $1 $70 0¢ 18¢ Note: Amounts in millions of USD, except earnings per diluted share. Percentages calculated on reported results rounded to nearest decimal. (1) Denotes non-GAAP financial term. '22 vs. '21 Up 93% NM Up 428% NM Up 678% 4#5#6#7#8#9#10#11#12#13#14

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