Slides
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November 6, 2025 8:00am ET Q3 2025 Earnings
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2 Forward-Looking Statements This presentation, conference call and discussions that follow contain statements concerning our expectations, anticipations and beliefs regarding the future, which constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are based on assumptions that we have made as of the date hereof and are subject to known and unknown risksand uncertainties, often contain words such as “anticipate,” “believe,” “estimate,” “expect,” “guidance,” “intend,” “may,” “outlook,” “scenario,” “should,” “would,” and “will.” Forward-looking statements may include statements regarding: our 2025 company and segment outlooks, including expected market pricing of lithium and spodumene and other underlying assumptions and outlook considerations; planned sale of a controlling stake in Ketjen and the amount of the proceeds for the controlling stake in Ketjen and our interest in the EurecatJV; timing for completion of both transactions, including obtaining regulatory approvals and meeting other closing conditions; expectations regarding use of proceeds from the both transactions; expected capital expenditure amounts and the corresponding impact on cash flow; expected impact of tariffs and other trade restrictions; actual market pricing of lithium carbonate equivalent and spodumene; plans and expectations regarding other projects and activities, cost reductions and accounting charges, and all other information relating to matters that are not historical facts. Factors that could cause Albemarle’s actual results to differ materially from the outlook expressed or implied in any forward-looking statement include: changes in economic and business conditions; changes in trade policies and tariffs; and the financial and operating performance of customers; timing and magnitude of customer orders; fluctuations in market pricingof lithium carbonate equivalent and spodumene; production volume shortfalls; increased competition and pressure to renegotiate contract terms; changes in product demand; availability and cost of raw materials and energy; technological change and development; fluctuations in foreign currencies; changes in laws and government regulation; regulatory actions, proceedings, claims or litigation; cyber-security breaches, terrorist attacks, industrial accidents or natural disasters; political unrest affecting global trade, the global economy and clean energy initiatives; changes in inflation or interest rates; volatility in the debt and equity markets; acquisition and divestiture transactions; timing and success of projects; expected benefits and expenses from new operating structure and asset optimization activities; performance of Albemarle’s partners in joint ventures and other projects; changes in credit ratings; and the other factors detailed from time to time in the reports Albemarle files with the SEC, including those described under “Risk Factors” in Albemarle’s most recent Annual Report on Form 10-K and any subsequently filed Quarterly Reports on Form 10-Q, which are filed with the SEC and available on the investor section of Albemarle’s website (investors.albemarle.com) and on the SEC’s website at www.sec.gov. These forward-lookingstatements speak only as of the date of this presentation. Albemarle assumes no obligation to provide any revisions to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws.
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3 Non-GAAP Measures It should be noted that adjusted net income (loss) attributable to Albemarle Corporation, adjusted net income (loss) attributable to Albemarle Corporation common shareholders, adjusted diluted (loss) earnings per share attributable to common shareholders, non-operating pension and other post- employment benefit (“OPEB”) items per diluted share, non-recurring and other unusual items per diluted share, adjusted effectiveincome tax rates, EBITDA, adjusted EBITDA (on a consolidated basis), EBITDA margin and adjusted EBITDA margin, operating cash flow conversion, and free cash flow are financial measures that are not required by, or presented in accordance with, accounting principles generally accepted inthe United States, or GAAP . These non-GAAP measures should not be considered as alternatives to Net income (loss) attributable to Albemarle Corporation (“earnings”) or other comparable measures calculated and reported in accordance with GAAP . These measures are presented here to provide additional useful measurements to review the company’s operations, provide transparency to investors and enable period-to-period comparability of financial performance. The company’s chief operating decision maker uses these measures to assess the ongoing performance of the company and its segments, as well as for business and enterprise planning purposes. A description of other non-GAAP financial measures that Albemarle uses to evaluate its operations and financial performance, andreconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP can be found on the following pages of this press release, which is also is available on Albemarle’s website at https://investors.albemarle.com. The company does not provide a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP , as the company is unable to estimate significant non-recurring or unusual items without unreasonable effort. The amounts and timing of these items are uncertain and could be material to the company's results calculated in accordance with GAAP .
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4 Maintaining Long-term Competitiveness and Driving Cost Efficiencies 1 See appendix for non-GAAP reconciliations 2 As defined in amended credit agreement, dated October 2024, see Appendix 3 A non-GAAP measure defined as operating cash flow minus capital expenditures. See “Non-GAAP Measures” for more information. Disciplined execution to deliver lower cost structure and enhanced financial flexibility: ▪ Reducing FY 2025 capital expenditures outlook to ~$600M ▪ On track to achieve full-year run-rate cost and productivity improvements of ~$450M ▪ Announced agreements to sell stakes in Ketjen and Eurecat JV for expected combined pre-tax cash proceeds of ~$660M Strong operational execution, demonstrated by Q3 2025 results: ▪ Net sales of $1.3B; volume growth in Energy Storage (+8%) and Ketjen (+8%) ▪ Adj. EBITDA1 of $226M up Y/Y; cost and efficiency improvements offset lower lithium pricing ▪ Q3 cash from ops. of $356M, up 57% Y/Y; YTD cash from ops. of $894M, up 29% Y/Y ▪ Net debt to adjusted EBITDA of 2.1x2 Enhancing FY 2025 outlook considerations: ▪ Enterprise results expected to be towards the higher end of the previously published $9/kg scenario ranges given year-to-date financial performance, lithium market pricing and better-than- expected Energy Storage volume growth ▪ Expect to achieve positive free cash flow3 of $300-400M in 2025 Global lithium demand remains strong YTD; significant growth in EVs and ESS: ▪ EV sales +30% Y/Y through Sept led by China and Europe BEVs ▪ ESS battery demand +105% Y/Y though Sept led by strong growth in US, Europe and China ▪ ESS market expected to grow ~2.5x by 2030 to support global energy resilience
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5 Recent Portfolio Management Actions ▪ On October 25, Albemarle entered into a definitive agreement with KPS Capital Partners to sell a controlling stake (51%) in Ketjen’s refining catalyst solutions business ▪ Separately, Albemarle has agreed to sell Ketjen’s interest in the Eurecat JV to its partner Axens SA ▪ Expect to receive ~$660M pre-tax cash proceeds and retain exposure to future upside in the refining catalyst solutions business ▪ Transaction proceeds will enhance ability to de-lever ▪ Transactions are expected to close in H1 2026 ▪ KPS will leverage their operating expertise and access to capital to allow Ketjen to focus on its growth opportunities Combined transactions strengthenAlbemarle's financial flexibility and drive greater portfolio focus 5
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6 (in millions, except per share amounts) Q3 2025 Q3 2024 Variance Net Sales $1,308 $1,355 -4% Net Loss Attributable to Albemarle Corporation $(161) ($1,069) +85% Adjusted EBITDA1 $226 $212 +7% Adjusted EBITDA Margin1 17% 16% +150 bps Diluted Loss per Share Attributable to Common Shareholders ($1.72) ($9.45) +82% Non-recurring and Other Unusual Items $1.53 $7.90 Adjusted Diluted Loss per Share Attributable to Common Shareholders1 ($0.19) ($1.55) +88% Q3 2025 Financial Summary 1 See appendix for non-GAAP reconciliations.
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7 $93 $32 $22 ($9) $246 Q3 2024 Volume Price COGS Pre-tax Equity Income SG&A and R&D FX Other Q3 2025 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 ($19) $19 ($2) $16 Q3 2024 Energy Storage Specialties Ketjen Corporate Q3 2025 $0 $50 $100 $150 $200 $250 Q3 Y/Y Adjusted EBITDA1 Bridges ($ in millions) Y/Y – by DriverY/Y – by Segment Note: Numbers may not reconcile due to rounding. 1 See appendix for non-GAAP reconciliations. Q3 2025 vs 2024 ▪ Higher volumes in Energy Storage and Ketjen and on- going cost and productivity improvements offset lower market pricing ▪ Lower SG&A and R&D reflects cost savings initiatives ▪ Specialties Adj EBITDA up Y/Y (+35%) on improved costs ▪ Corporate EBITDA change primarily reflects FX gains ($132) $211 $226($239) $226$211
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8 FY 2025 Results Expected to be Towards the Higher End of $9/kg Scenario1 1 As of November 5, 2025 2 Price represents blend of China (ex-VAT) and Asia, Hydroxide and Carbonate, spot market indices in $/kg LCE 3 The company does not provide the GAAP measures of net income, gross margin, or diluted earnings per share on a forward-looking basis, or a reconciliation of adjusted EBITDA or adjusted diluted earnings per share to such measure, respectively, because it is unable to estimate significant non-recurring or unusual items without unreasonable effort. See “Non-GAAP Measures” for more information Net Sales $4.9B - $5.2B $5.3B - $6.1B $6.5B - $7.0B Adj. EBITDA3 $0.8B - $1.0B $1.2B - $1.8B $2.5B - $2.7B 8 Observed Lithium Market Price Scenarios: (US$/kg LCE)2 Q4 2023 avg. $20 H1 2024 range $12-15 H1 2025 avg. ~$9 Enhancing total company 2025E outlook considerations: ▪ Successful execution of cost and productivity improvements ▪ Operational excellence including Energy Storage project ramps ▪ Energy storage sales volume growth ≥10% Y/Y ▪ Ketjen and Specialties EBITDA trending towards mid-point of outlook ranges (see slide 21) 8
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9 2025 Commentary by Segment1 S P E C I A L T I E S ▪ Volume growth expected Y/Y led by pharma, automotive, and oilfield; partially offset by weakness in building & construction ▪ Q4 net sales expected to be roughly flat sequentially, EBITDA to be slightly lower due to weaker demand in oil & gas applications KETJEN ▪ FY 2025 adjusted EBITDA is expected to be higher Y/Y with strong FCC volume offset by lower CFT volume due to order timing ▪ Q4 expected to be stronger sequentially due to higher CFT and FCC volumes ENERGY S T O R A G E ▪ Q3 2025 sales volumes of 67 kT LCE2, YTD sales volumes of 169 kT LCE; YTD record production from integrated conversion network ▪ Sales volume growth expected to be ≥10% Y/Y , above previous expectations due to record integrated production, strong spodumene sales, and inventory drawdowns ▪ ~45% of 2025E salts volumes sold on long-term agreements (LTAs), due to higher overall sales volumes and mix w/strong Chinese demand ▪ LTAs are index referenced, variable priced contracts; 2-5 years duration at inception, 3-month price lag, all with floors, some with ceilings, specifics vary by contract ▪ Q4 net sales expected to be similar to Q3, EBITDA expected to be higher sequentially due to product mix and timing of Talison inventory flow-through 1 As of November 5, 2025 2 Includes consolidated lithium salts and spodumene sales
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10 38% 50% 37% 60% 108% >80% FY '21 FY '22 FY '23 FY '24 YTD '25 FY '25E Operating Cash Flow Conversion1 1 Defined as Operating Cash Flow divided by Adj. EBITDA, which is a non-GAAP measure. See Non-GAAP Reconciliations for further details; historical average represents the average operating cash flow conversion over 2021-2024; for comparability, 2023 figures presented under adjusted EBITDA definition adopted by the company beginning in 2024. Expect to Achieve Positive FY 2025 Free Cash Flow ▪ FY 2025E operating cash conversion expected to be >80%, well above historical average1, driven by: 1. $350M customer prepayment in Energy Storage secured in January 2. On-going working capital improvements, including inventory management ▪ Enhancing cash conversion by optimizing capacity, managing inventory and conducting bidding events and spodumene sales ▪ FY 2025E Talison JV cash dividends below historic averages due to growth capital spending and lower spodumene prices ▪ Q4 conversion expected to be below YTD rate due to timing of interest payments and sequentially higher pricing translates to more working capital ▪ Expect to achieve FY 2025 FCF of $300-400M, due to execution of cost and productivity improvements, continued cash conversion improvements and reduced CapEx spend 10 Long-term target 60-70%
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11 Disciplined Near-Term Capital Allocation Priorities Cash Balance as of Sep 30 Debt Repayment Q4 2025 Implied FCF Q4 2025 (based on est. FY 2025 FCF of $300-400M) Near-Term Cash • Financial Flexibility − Evaluating additional deleveraging and liability management opportunities for 2026 • Common & Preferred Dividends (final pref. dividend in March 2027) • Disciplined, organic investment − Maintain world-class resources − Reduce costs and enhance efficiency − Ramp/debottleneck operations Near-Term Priorities Minimum Cash Balance of ~$0.6B $1.9B Estimates ~($440M) ~($100M) Transactions Gross Proceeds Expected H1 2026 ~$660M ~$2.0B ~$1.4B Cash Potential Avail to Deploy
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12 YTD Global EV Demand Growth Remains Strong+30% Y/Y , Led by China and Europe 1 Source: EV Volumes registrations data as of Oct 31, 2025 Global EV sales show continued strong growth through Sept Global EV Sales1 (in millions) Incentives drive strong sales for BEVs (+37% Y/Y), particularly low-cost options North America EV Sales1Europe EV Sales1China EV Sales1 China remains >60% of global electric vehicle market, with continued strong demand 60% of Global 20% of Global 10% of Global Europe EV sales continue to accelerate as EU emission targets spur electrification U.S. EV sales uptick ahead of removal of 30D tax credit 0 5 10 15 20 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 0 5 10 15 20 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 0 5 10 15 20 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 0 5 10 15 20 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2023 2024 2025 +30% 2025 Y/Y +31% 2025 Y/Y 12% 2025 Y/Y +30% 2025 Y/Y
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13 2024 2025E 2030E Li-ion stationary storage demand driven by competitive economics and desire for energy reliability Data center electricity demand expected to more than double by 2030 450 940 2024 2025E 2030E 200 380 250 430 1,070 ESS supports peak-demand, regulates grid frequency and voltage and provides back-up power 370 Data Center Electricity Demand Source: BloombergNEF (TWh) Lithium Demand for Energy Storage Systems (ESS) Source: ALB Analysis (kT LCE) Global Li-ion battery demand for stationary storage +105% Y/Y YTD through September1 China: +60% Y/Y 50% of Global Installations Commitment to ESS reinforced with mandate included in recently announced 15th 5-yr Plan North America: +145% Y/Y 20% of Global Installations Focus on grid stability as data center demand ramps up Europe: +145% Y/Y 10% of Global Installations Decarbonization commitment increasing demand from renewables paired with ESS Lithium Demand for Stationary Storage to Increase ~2.5x by 2030 to Support Energy Availability and Resilience 1 Source: ICC Energy Storage Battery Production Data
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14 Broad Set of Actions Underway to Maintain our Long-term Competitive Position Optimizing Conversion Network Improving Costs and Efficiency Reducing Capital Expenditures Enhancing Financial Flexibility Actions Taken Since Early 2024 • Significantly reduced footprint at Kemerton (Trains 2, 3, 4) • Placed Chengu facility into care and maintenance • Meishan ramp progressing ahead of schedule • Delivered proactive measures to re- phase growth investments, optimize cost structure, unlock cash flow • Streamlined org. structure, reducing management layers and non-manufacturing roles • Re-phased capex to maintain growth while preserving cash • Reduced sustaining capex • FY 2024 capex decreased 20% Y/Y • Delivered >$2.5B of fresh capital to fortify balance sheet • Proactively amended credit agreement and extended waiver to navigate near-term dynamics • Established A/R factoring program Recent Developments ▪ YTD record production from integrated conversion network ▪ FY 2025 Energy storage sales volume growth expected to be ≥10% ▪ On track to deliver run-rate ~$450M cost and productivity improvement ▪ On track to deliver >80% Adj. EBITDA to operating cash flow conversion1 ▪ Reducing FY 2025 capex outlook to ~$600M, down 65% Y/Y • Expect to achieve $300-400M FY 2025 FCF • Announced asset sales with expected combined pre-tax cash proceeds of ~$660M Potential Upside or Mitigation Actions ▪ Maximize value of world-class resources ▪ Flexibly adjust product mix through conversion and tolling networks ▪ Optimize asset ramps ▪ Further accelerate/enhance cost- out and productivity programs ▪ Further reduce capital intensity ▪ High return, fast payback projects to debottleneck and/or lower costs ▪ Ongoing working capital reductions 1 See appendix for non-GAAP reconciliations.
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15 SG&A & R&D Costs1 Trailing 12-month ($M) Free Cash Flow1 Trailing 12-month ($M) Improved Adj. EBITDA Margin Despite Lower Lithium Pricing Trailing 12-month 25% 16% 12% 21% 22% 21% 22% $0 $10 $20 $30 $40 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2025 Q1 2025 Q2 2025 Q3 Lithium Price2 Trailing 12-month Actions to Reduce Costs, Generate Cash Are Driving Positive Results 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2025 Q1 2025 Q2 2025 Q3 ($1.6B) ($1.3B) ($1.4B) ($1.0B) (0.1B) ($0.2B) $0.1B 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2025 Q1 2025 Q2 2025 Q3 Delivering Non-manufacturing Cost & Productivity Savings in FY 2025; Demonstrated in Quarterly Results Sharp Improvement in Cash Flow Generation; Expect to Generate $300-400M FCF in 2025 • Taking robust, proactive steps to lower costs and generate cash, strengthening bottom- and through-cycle resilience • Adj. EBITDA margins stabilizing in low to mid-20% range, despite lithium price declining over the last 2 years • Poised for greater margin capture as lithium price improves; Full-year adj. EBITDA margin potential of ≥30% at $15/kg LCE -$166M (-22%) 1 See appendix for non-GAAP reconciliations 2 Price represents blend of China (ex-VAT) and Asia, Hydroxide and Carbonate, spot market indices in $/kg LCE
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16 Maintaining Long-term Competitiveness and Driving Cost Efficiencies 1 See appendix for non-GAAP reconciliations Strong operational execution, demonstrated by Q3 2025 results; Net sales of $1.3B; Adj. EBITDA1 of $226M up Y/Y as cost and efficiency improvements offset lower lithium pricing Enhancingoutlook considerations; FY 2025 trending towards higher-end of previous range; expect to achieve positive free cash flow of $300-400M in 2025 Proactive steps to preserve long-term growth, focus on core businesses and maintain competitive position through cycle are driving improved financial results Capitalizing on long-term secular growth opportunities supporting the energy transition and energy resilience with enhanced mobility, connectivity and health A global leader with durable competitive strengths, including world-class assets, process chemistry expertise, customer-centric market approach, innovation capabilities and responsible stewardship
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17 Nov 11 Morgan Stanley Global Chemicals Conference Nov 12 East Coast NDR Nov 20 Deutsche Bank Lithium Conference (Virtual) Nov 24 Bank of America Critical Materials Conference (Virtual) Dec 3 West Coast NDR Meredith Bandy, CFA VP , Investor Relations & Sustainability meredith.bandy@albemarle.com +1 980.999.5168 Isaac Price Manager, Investor Relations isaac.price@albemarle.com +1 980.308.6194 Q4 2025 Investor Relations Events
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Appendix
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20 1 As of November 5, 2025 2 Price represents blend of relevant market pricing including spot and regional indices for the periods referenced. 3 The company does not provide the GAAP measures of net income, gross margin, or diluted earnings per share on a forward-looking basis, or a reconciliation of adjusted EBITDA or adjusted diluted earnings per share to such measure, respectively, because it is unable to estimate significant non-recurring or unusual items without unreasonable effort. See “Non-GAAP Measures” for more information. 4 Equity in net income of unconsolidated investments (net of tax), included in adjusted EBITDA on a pre-tax basis. FY 2024A FY 2025E Net Sales $3.0B $2.5B - $2.6B $2.9B - $3.5B $4.2B - $4.5B Adj. EBITDA3 $0.8B $0.6B - $0.7B $1.0B - $1.5B $2.2B - $2.4B Equity Income (net of tax)4 $0.7B $0.2B - $0.3B $0.3B - $0.5B $0.6B - $0.7B Adj. EBITDA Margin3 25% Mid-20% Mid-30% to Mid-40% Mid-50% FY 2025E Energy Storage Market Price Scenarios1 Observed Lithium Market Price Scenarios: (US$/kg LCE)2 Q4 2023 avg. $20 H1 2024 range $12-15 Q2 2025 avg. ~$9 FY 2024A $12 20 FY2025 results expected to be towards the high-end of the $9/kg scenario due to: ▪ Successful execution of cost and productivity improvements ▪ Operational excellence including Energy Storage project ramps ▪ Energy storage volume growth ≥10% Y/Y ▪ Equity income (net of tax) expected to be at the mid-point of $9/kg range
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21 Specialties, Ketjen, and Corporate FY 2025E Outlook Considerations Segments FY 2024A FY 2025E as of November 5, 2025 Specialties Net Sales $1.3B $1.3B – $1.5B Specialties Adj. EBITDA $229M $210M – $280M Ketjen Net Sales $1.0B $1.0B – $1.1B Ketjen Adj. EBITDA $131M $120M – $150M Other Corporate Capital Expenditures $1.7B ~$600M Depreciation and Amortization $589M $630M – $670M Adjusted Effective Tax Rate1 (39%) (40%) – 25% Corporate Costs Included in Adj. EBITDA (Incl. FX)2 ($23M) $10M – $30M Interest and Financing Expenses $166M $180M – $210M Weighted-Average Common Shares Outstanding (Diluted) 117.5M 118M 1 Adjusted effective tax rate dependent on lithium market prices and geographic income mix 2 FY 2024A corporate costs includes $71M benefit related to FX; FY 2025E outlook includes FX impact year to date
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22 Illustrative Calculation of FY 2025E Adj. EPS at ~$9/kg Scenario Q2 2025 avg. ~$9/kg Scenario (in millions, except per share amounts) Low High Adjusted EBITDA1 $800 $1,000 - Pre-T ax Equity Income $290 $430 Assuming 30% AU tax rate - Interest Expenses $180 $210 - Depreciation and Amortization $630 $670 Pre-Tax (Loss) Income Before Equity Income ($300) ($310) - T ax $120 $120 Assuming (40%) ETR After-Tax (Loss) Income Before Equity Income ($420) ($430) + Equity Income $200 $300 Net (Loss) Income Attributable to ALB ($220) ($130) - Preferred Stock Dividends $170M $170M More dilutive to subtract preferred dividends ÷ Weighted-Avg. Common Shares (Diluted) 118M 118M Adj. Diluted EPS ~($3.30) ~($2.50) 1 The company does not provide the GAAP measures of net income, gross margin, or diluted earnings per share on a forward-looking basis, or a reconciliation of adjusted EBITDA or adjusted diluted earnings per share to such measure, respectively, because it is unable to estimate significant non-recurring or unusual items without unreasonable effort. See “Non-GAAP Measures” for more information
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23 Our Actions Have Enhanced Financial Flexibility1 $1,500 Undrawn Revolver $107 Other Credit Lines $1,932 Cash & Cash Equivalents 1 All charts and data as of September 30, 2025 2 As defined in amended credit agreement, dated October 2024, see Appendix $440 $650 $583 $172 $600 $350 $450 2025 2026 2027 2028 2029 2032 2044 2052 Nov. 2025 Eurobonds expected to be repaid with cash on hand 3.5x 5.0x 5.5x 4.0x 0.9x 2.1x 3.5x 2.6x 2.4x 2.3x 2.1x 4.75x 5.75x 5.5x 5.0x 4.75x 4.75x 3.5x 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 Covenent Limit Actual Results Leverage Tracking Well Below Covenant Limits2 Ample Flexibility to Repay or Extend Debt Maturities Long-term debt has weighted average interest rate of 3.6% (100% fixed) Strong Liquidity Position $3.5B Liquidity
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24 Definitions of Non-GAAP Measures NON-GAAP MEASURE DESCRIPTION Adjusted Net Income Attributable to Common Shareholders Net income after mandatory convertible preferred stock dividends before non-recurring, other unusual and non-operating pension and OPEB. Adjusted Diluted EPS Attributable to Common Shareholders Diluted EPS before non-recurring, other unusual and non-operating pension and OPEB. EBITDA Net income attributable to Albemarle Corporation before interest and financing expenses, income taxes, and depreciation and amortization. Adjusted EBITDA EBITDA before non-recurring, other unusual and non-operating pension and OPEB. Operating Cash Flow Conversion Operating Cash Flow divided by Adj. EBITDA. Adjusted Effective Income Tax Rate Reported effective income tax rate before the tax impact of non-recurring, other unusual and non-operating pension and OPEB items. Free Cash Flow Operating cash flow minus capital expenditures.
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25 See above for a reconciliation of adjusted net income, the non-GAAP financial measure, to Net income attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with GAAP. Adjusted Net Income 0 0 0 (1,0 ,99 ) (1 0, 9 )Net loss attributable to Albemarle Corporation Add back: ( )1 9Non operating pension and OPEB items (net of tax) 9 , 11 0,0 5Non recurring and other unusual items (net of tax) (1 0,5 5)19,5 0Adjusted net income (loss) attributable to Albemarle Corporation ( 1, )( 1, )Mandatory convertible preferred stock dividends (1 , 5 ) ( ,1 )Adjusted net loss attributable to Albemarle Corporation common shareholders (1.55) (0.19) Adjusted diluted loss per share attributable to Albemarle Corporation common shareholders 11 ,5 511 , 5Adjusted weighted average common shares outstanding diluted
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26 0 0 0 0 0 0 % % % % ( 0. )% (1, 5 , )( . )% (9 , 9)( .9)% (1,0 ,99 )(1 . )% (1 0, 9 )Net loss attributable to Albemarle Corporation Add back: .9 %1 0,91 .0 %1 9, 5 .5 % , 0 .9 %50,959 nterest and financing expenses 1. % , %( 9) . %110, 5 ( . )%( 0,5 5) ncome tax (benefit) expense 10. % 5,5 1 . % 9 ,9 1 .1 %1 ,50 1 . %1 , epreciation and amortization (15. )%( 1, )1 . %5 ,9 5(55.1)%( , )1. % ,1 .1 % 9 ,99 .1 % , 99 . %99,5 1.5 % 0,0 Proportionate share of indfield oldings income tax expense %(99 ) %9 %( 1) % Non operating pension and OPEB items 9. %1, ,91 5. % 01, . % 59,1 1 . %1 1,05 Non recurring and other unusual items 1. % 9,09 . % 9, 915. % 11, 9 1 . % 5, 0 ,1 5, 1 , 1 , 0 1, 5 , 9 1, 0 , 9 9 , 55 9 , Net cash provided by operating activities .9 %10 . %Operating cash flow conversion(a) (a) Operating cash flow conversion is defined as Net cash provided by operating activities divided by adjusted EBITDA. See above for a reconciliation of EBITDA and 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. EBITDA and Adjusted EBITDA
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27 1 0 1 0 0 0 0 0 0 0 0 1 0 1 0 ( ,9 )(9, 00)( , 9 )( , 5 )( 9,0 5)E uity in net income of non indfield oldings unconsolidated investments (net of tax) 10,5 , , 95,11 9,55 ividends received from non indfield oldings unconsolidated investments 0 0 1 0 0 10,09 9% indfield oldings debt 91,900Off balance sheet obligations and other 1,9 1, 5 Less Cash 19 , 0 Less 9% indfield oldings cash 0 0 1 1 This supplemental is for net-debt-to-adjusted EBITDA ratio based on the bank covenant definition. Adjusted EBITDA supplemental1
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28 0 0 0 (9. 5) (1. ) iluted loss per share attributable to Albemarle Corporation common shareholders Add back: Non operating pension and OPEB items (net of tax) Non recurring and other unusual items (net of tax) .910.0 Restructuring charges and asset write offs 1. 9Goodwill impairment charges 0.01Ac uisition and integration related costs 0.0 (0.05)(Gain) loss in fair value of public e uity securities (0.0 )0.0 Other 0.0 Tax related items .901.5 Total non recurring and other unusual items (1.55) (0.19)Adjusted diluted loss per share attributable to common shareholders1 11 ,5 511 , 5Adjusted weighted average common shares outstanding diluted 1Totals may not add due to rounding. Diluted EPS
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29 0 0 1 . % ( 0,5 5) ( 9,1 )As reported 1, 101 1, Non recurring, other unusual and non operating pension and OPEB items 50.9 % ( 9, 55) (5 , )As adjusted 0 0 (9. )% 110, 5 (1,1 , )As reported ( 9,5 5) 5 , 5 Non recurring, other unusual and non operating pension and OPEB items (1 .9)% 1, ( 19,99 )As adjusted See above for a reconciliation of the adjusted effective income tax rate, the non-GAAP financial measure, to the effective income tax rate, the most directly comparable financial measure calculated and reporting in accordance with GAAP. Effective Tax Rate
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30 Note: Corporate equity income relates to foreign exchange gains or losses of our Windfield Holdings joint venture. Equity Income and Noncontrolling Interest 0 0 0 1 , 9 , 9 Energy Storage ( , 1) (1 , 5 ) Specialties 1, 9 ,05 Ketjen 1 01 ,5 5,0 Corporate ( , 51) 9,05 (1 , 5 ) 0, 0Total Company
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31 See above for reconciliations of: 1) LTM SG&A & R&D Costs, the non-GAAP financial measures, to Selling, general and administrative activities, the most directly comparable financial measure calculated and reported in accordance with GAAP; and 2) LTM Free Cash Flow, the non-GAAP financial measures, to Net cash provided by operating activities, the most directly comparable financial measure calculated and reported in accordance with GAAP LTM SG&A & R&D Costs and LTM Free Cash Flow 0 0 0 0 1 0 1 0 0 0 0 0 1 0 5 0,5 5 , 0 5 0,1 1 ,0 ,00 05, 950, 0 LTM Selling, general and administrative expenses ( SG A ) 59, ,9 1 , , 0 9, 5 ,1 , LTM Research and development expenses ( ,90 ) , ( , )(11,5 )( 1,919)( , 5)( 5, 1 )Less: LTM SG A non recurring and other unusual items 5 , 1 , 1 , 1 9 ,19 ,5 1 9,55 5 , Total SG A R Costs 9, 0 0,90 1,1 ,59 , 595, 9 99 ,0 0 ,0 LTM Net cash provided by operating activities ( , )(9 ,1 )(1, 0,111)(1, 0,5 9)( ,0 ,0 )( , 9, 0)( , 1,9 )Less: LTM Capital expenditures 11 ,1 (1 , 0)(1 ,51 )(99 , 5 )(1, 1, 0)(1, , 9 )(1, 1 , )Total Free Cash Flow
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32 www.albemarle.com