Albemarle (ALB) Earnings Call Presentation

Financial Performance & Strategy - Albemarle's FY2023 net sales reached $9.6 billion[8], with a net income of $1.6 billion[8] and adjusted EBITDA of $3.5 billion[8], representing a 37% adjusted EBITDA margin[8] - The company anticipates continued growth in 2024, projecting a 10-20% year-over-year increase in Energy Storage volumes[9] - Albemarle is implementing measures to reduce annualized operating costs by approximately $95 million[36], primarily in SG&A, and is re-phasing large projects to optimize cash flow[36] Business Segments - Energy Storage accounted for 74% of Albemarle's FY2023 net sales[8], while Specialties contributed 15%[8] and Ketjen 11%[8] - Energy Storage's adjusted EBITDA margin was projected to improve by ~500 bps at $15/kg LCE scenario[33] - Albemarle's Lithium Spodumene Operations have an average Li grade of 1.8% Li2O, a 50% advantage over the producer average of 1.2%[31] Market & Operations - Global EV sales are up +20% YTD, with China representing >60% of the global electric vehicle market[67, 68] - Albemarle expects a 15-20% CAGR in lithium demand between 2024 and 2030, reaching 3.3 million metric tons LCE by 2030[62] - The company's planned capital expenditures for 2024 include commissioning the Meishan, China lithium conversion facility and completing commissioning at trains 1 and 2 of the Kemerton, Australia lithium conversion facility[78] Sustainability - Albemarle is committed to growing its Energy Storage business in a scope 1 + 2 carbon-intensity neutral manner through 2030 (vs 2019)[55] - The company aims to reduce the intensity of freshwater usage by 25% by 2030 (vs 2019) in Chile and Jordan[55]