Investor Presentaiton
Lithium Overview
Y/Y Q2 Performance Drivers
•
Net sales up 178% (price³ +160%, volume +18%); adjusted EBITDA +353%
Q2 2022 Performance
•
•
Increased sales due to renegotiated fixed and index-referenced variable price contracts and
increased market pricing
Adjusted EBITDA benefited from favorable pricing from contract renegotiations
FY 2022 Outlook (as of 8/3/2022)
•
•
•
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FY 2022 adj. EBITDA expected to be +500-550% Y/Y, up from previous outlook as average
realized pricing is now expected to be +225-250% Y/Y resulting from increased market pricing
FY 2022 volume expected to be +20-30% Y/Y primarily due to new capacity coming online and
higher tolling volumes
Revised outlook reflects Q2 contract renegotiations and additional tolling and assumes
expected Albemarle Q3 realized selling price remains constant for remainder of the year
Potential upside if market pricing remains near current levels or if current contract
renegotiations result in additional index-referenced, variable pricing, or with additional tolled
volumes; potential downside with a material correction in lithium market pricing or potential
volume shortfalls (e.g., delays in acquisitions or expansion projects)
(in millions)
Net Sales
Net Sales ex FX1
Q2 2022
Y/Y
$892
+178%
$907
+183%
$495
+352%
$510
+366%
56%
+2,138 bps
Adj. EBITDA Margin ex FX1,4
56%
+2,205 bps
Adj. EBITDA4
Adj. EBITDA ex FX1,4
Adj. EBITDA Margin4
Historical Trend (TTM)
Adjusted EBITDA
Adjusted EBITDA Margin
$1,067M
48%
$682M
Drivers/Sensitivities
$463M
$480M
42%
$436M
36%
35%
35%
•
Energy storage (~85% of Li sales²): Primary driver - EV sales in Europe and China
•
Specialties & TG (~15% of Li sales²): Primary driver - consumer spending & industrial
production
2Q21
3Q21
4Q21
1Q22
2Q22
25
MAKING THE WORLD SAFE AND SUSTAINABLE Note: Numbers may not reconcile due to rounding. 1 Net of FX impacts. 2 Sales based on historical average. ³ Includes FX impact. 4 See appendix for
non-GAAP reconciliations.
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