Investor Presentation JP Morgan -- Global Leaders 1x1 Forum Lorin Crenshaw, VP, Treasurer & Investor Relations June 4, 2014
Seasoned Leadership Team Combined 90+ years of experience Luke Kissam Matt Juneau CEO Sr. VP President Performance Chemicals 20+ yrs of chemicals industry experience 30 yrs with Albemarle; Led global sales, Fmr. President, Mfg. Head…
Organizational Structure Supports Strategy Execution Catalysts Fine Custom Leading supplier of top performance catalysts and related Chemistry Manufacturing services to the oil refining and plastics industries Services Bromine…
Integrated Platform Increases Speed to Market, Customer Influence, Supplier Leverage & Innovation Catalyst Solutions Performance Chemicals Performance Catalyst Refinery Catalyst Fire Safety Specialty Fine Chemistry Solutions…
Exceptional Market Diversity Utilities Personal Care Lubricants Other Other Industrials Oilfield (TTM % of sales as of (1Q14) Agriculture Services Plastics / Lubricants Packaging Electronics Refining / Oilfield…
Substantial Earnings Potential with Minimal Incremental Capital Spend Well positioned to capitalize on Total Segment Margins* catalysts and bromine market trends with major investments already in 26% - 29% place 26% 26%…
Catalyst Solutions Overview By Business Growth Drivers 24% Rising fuel consumption PCS More stringent air quality mandates Investments in conversion capacity (% of sales as for 2013*) RCS Infrastructure spending 76%…
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…
Capitalizing on Market Trends Market Driver Innovation Value to Customer Global Fuel Consumption ACTION FCC catalysts Enhances transportation fuels and alky feedstock Raises octane value of gasoline Heavier Crudes UPGRADER FCC…
HOU: FCC Catalyst Demand Driven by Propylene Growth and Increased Transportation Fuels Demand Gasoline Consumption by Region, bcm Global FCC Catalyst Demand Driven by: 5000 China 4500 Other non-OECD Continuous investment in refining…
CFT: Catalyst Growth Will Be Accelerated by Clean Air Mandates Sulfur Standards per Region Global HPC Demand Growing: Substantial global capacity additions in 10-15 ppm refineries for hydroprocessing & hydrocracking 16-50 ppm…
Implications of Tight Oil 100% What is Tight Oil LPG 80% Liquid hydrocarbons obtained by hydraulically fracturing shale Naphtha formations; today a NA phenomenon 60% Distillate Typically a light, sweet, paraffinic feed 40%…
PCS: Investments in Future Growth Yeosu, Korea SOCC, Saudi Arabia Single-site catalyst production JV with SABIC State-of-the-art research & First TEA facility in the region operations center Meeting security of supply and Metal…
Catalyst Solutions Business Outlook Refinery catalysts fundamentals solid, 2014 growth driven by: More normal FCC turnarounds compared to 2013 Continued strong FCC demand and new customer wins Metals contamination in tight oil and…
Performance Chemicals Overview By Business Growth Drivers 17% Energy demand & increased deep water drilling driving completion fluids FSS Clean air regulations bolstering mercury control 45% SPC Growing population & higher protein…
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 UK plant in…
Well-positioned to Capitalize on New Demand for FRs Best product portfolio for widest range of electrical and electronic applications across all markets 20
Performance Chemicals Business Outlook Favorable offshore, deep water drilling fundamentals driving continued growth in clear completion fluids demand Servers and automotive electronics and TV stability increases offsetting lower…
Financial Outlook & Earnings Potential Operating Revenue 2013 Segment Segment Margin Growth and Profitability Drivers Segment Growth Targets Margin* Target Improve asset utilization Catalyst High incremental margins 1.0x - 2.0x…
Working Capital: Substantial Cash Flow Opportunity Days Inventory Outstanding Days Sales Outstanding Days Payable Outstanding 165M potential 27M potential 88M potential impact impact impact 94 65 62 57 57 59 53 46 37…
Continued Disciplined Approach to Capital Allocation 2004-2013 Outlook ( in millions) Committed to continued dividend growth CAPEX in the range of 4% of sales 1.2B 1.6B Working capital reduction of 100M by 2015 Disciplined M&A…
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