Albemarle Corporation Investor Presentation February 2015
Albemarle Acquisition of Rockwood: A Compelling Transaction Creates a premier specialty chemicals company with leading positions in attractive end markets around the world Accelerates Albemarles strategy of bringing lithium and…
Transaction Summary Combined company will be a leading specialty chemical company with industry-leading growth and EBITDA margins Accelerates Albemarles growth and enhances its margin profile Creates the potential for more consistent…
Lithium and Bromine Fit Accelerates Synergy Capture Low Cost Sourcing and Processing Best sourcing and most diverse locations in the world due to long term reserves and highest concentration levels Chile, Australia, Nevada and…
New Organizational Structure Legacy ALB and ROC Structure New Structure Effective 1Q2015 Fine Metal Metal FCS* Chemistry Sulfide Sulfide Performance Services Catalysts Minerals Performance Catalysts Specialty Chemicals…
Divest Non-core Assets to Focus on Core Growth Robust & differentiated portfolio of mineral flame retardants products used in wire and cable, electronic and electrical components and non-FRs product used The three businesses in…
Integration Update Achieved 30 million of annualized synergies on Day 1 and on track to achieve 50 million by the end of year 1 with the remaining 50 million by the end of year 2 Announced new organizational structure that will drive…
Full Year 2015 Outlook Initial Division Performance Drivers Outlook Refining Solutions Heavy Oil Upgrading Volume growth on increased transportation fuel demand Clean Fuel Technologies Flat to down on timing and product mix with a…
2015 Adjusted EBITDA Outlook The original 2015 forecast was completed in July 2014 and pre-oil price decline Short-term impact of oil and foreign exchange negatively Adjusted EBITDA* 1.1 B 70M -150M impacting free cash flow for…
2015 FCF Outlook Free Cash Flow* 2015 FCF Key Assumptions and Impacts: 600M - 900M Tax rate of 25% 70M - 150M Interest Expense 145 million CAPEX less than 6% of revenue 40M - 50M One time costs 200 million associated with…
Strong Leadership with Substantial Industry Experience Luther C. Luke Kissam D. Michael Wilson Joris Merckx Silvio Ghyoot President Senior Vice President & President, President, & Chief Executive Officer President of Performance…
Appendix 14
Catalyst Solutions Overview By Business Growth Drivers (% of sales as for 2014*) Rising fuel consumption More stringent air quality mandates 23% Investments in conversion capacity PCS Infrastructure spending Growing middle…
Market Position Market Segment Position Core Strengths FCC Catalysts 2 Deep customer understanding Heavy Oil Max Propylene 1 Upgrading Heavy investment in R&D Resid 2 Global footprint Distillates 1 Unparalleled network of…
Global Catalyst Market Our View FCC- max C3= AlkyClean Hydrotreating Albemarle Segment (RCS) 5.6B FCC- VGO SSC PP Albemarle Segment (PCS) 0.7B SSC PE Hydrocracking Non-Albemarle Segment 17.5B Degree of Competitive…
Catalyst Solutions Throughout the Refinery Heavy Oil Upgrading (FCC) Clean Fuels Technologies (HPC) Albemarle provides the global refining industry with a wide range of catalyst solutions to convert crude oil into high value…
Performance Chemicals Overview By Business Growth Drivers (% of sales as for 2014*) Energy demand & increased deep water drilling 17% Fire Safety Solutions driving completion fluids Clean air regulations bolstering mercury…
Strong Core of Bromine & Derivatives with High Value Diverse Bromine and Bromine Delivering Attractive High Derivatives Offering Value Margins Gross Profit from Bromine-based Products Relative Contribution/Kg Bromine Utilized…
Leading Bromine Sourcing Position Dead Sea Concentrate ALB & ICL 2014 Global Capacity Dead Sea Competitive Arkansas ALB & CHMT Noncompetitive 20% Michigan Closed in 2006 India Concentrate China 80% Seawater Closed UK…
Well-positioned to Capitalize on New Demand for FRs Best product portfolio for widest range of electrical and electronic applications across all markets 22
Lithium Is Positioned to Benefit From Growth By Product Growth Drivers Energy storage market (% of sales as for 2014*) 14% Special Salts Adoption of non-conventional transportation vehicles Growth for conventional end markets…
Potential Lithium Demand Delivers Significant Upside Application Lithium Carbonate Automotive High Content Automotive Low 350,000 Cell Phone Portable Battery 3 grams 0.1 oz Grid Storage: Automotive Average Other Potential Notebook…
Chemetall Surface Treatment Grows With Innovation, Service and Global Reach By End Market Growth Drivers General Industry Growth in aerospace, automotive, and general (% of sales as for 2014*) industries Aerospace…
Focused Approach Enabled Chemetall Surface Treatment to Grow Estimated Market Share 2007 2013 Market Share by Segment Estimated 2 provider globally of surface treatment Sales Total Market Chemetall Net products and services…
Focused Approach has Enabled ROC Surface Treatment to Gain Market Share Source: Company 2013 estimates 28
Non-GAAP Reconciliations Appendix 29
EBITDA supplemental - Legacy ALB ( in thousands) Performance Catalyst Corporate Chemicals Solutions & Other Consolidated Year ended December 31, 2014: Operating profit 306,616 224,407 (259,725) 271,298 Depreciation and…
EBITDA Legacy Rockwood Surface ( in millions) Lithium Treatment Twelve months ended December 31, 2014 Income (loss) from continuing operations before taxes 130.7 154.4 Interest (income) expense, net (1.9) 11.8 Depreciation and…
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