Albemarle Corp (NYSE: ALB)

Business Overview: [High-level overview]

 Products / Services: Operates in 3 divisions: lithium mining (68.4% of 2022 revenues), bromine
specialties (19.3% of 2022 revenues) and catalysts extraction (12.3% of 2022 revenues).
 Customer Base: Lithium based batteries producers (mainly Tesla, Ford, LG Energy solutions), operating
worldwide as well.
 End-Markets: EV battery producers, accounting for more than 85% of lithium contracts, fire safety
products, accounting for most bromine contracts and bromine catalysts, sold to chemical businesses,
the major contract being M. R. Grace and Co.
 Operating Geography: Major extracting operations countries locates in Australia, Chile (70% of world
lithium supply), China, Jordan and the U.S. Contracts worldwide with EV/Lithium based batteries
producers in over 70 countries.

Financial Profile:

Historical Income Statement

12,000.00 37% 45%
39%
9,663.23 40%
10,000.00
35%
8,000.00 28% 7,320.10 30%
26% 26%
24% 25%
6,000.00
20%
4,000.00 3,374.95 3,589.43 3,327.96 3,616 15%
3,128.91 2,868
10%
2,000.00 950 943 865
742 5%
0.00 0%
12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 LTM

Revenues EBITDA % Margin

Historical Performance
12,000 15%

10,000 9% 9,663 10%

10%
8,000 7,320 5%

6,000 -2% 0%
-5% -4%
4,000 3,375 3,589 3,328 -5%
3,129

2,000 964 -10%

646
0 -15%
-154 -132 -52 -18%
-609
-2,000 -20%
2018 2019 2020 2021 2022 LTM

Revenues FCF % Margin

Stock Price Performance / Investor Sentiment:

5-Year Stock Performance

$350.00

$300.00

$250.00

$200.00

$150.00

$100.00

$50.00

$-
18 18 19 19 19 19 19 19 19 19 20 20 20 20 20 20 20 21 21 21 21 21 21 21 21 22 22 22 22 22 22 22 23 23 23 23 23 23
/ 1/ 19/ /7/ 25/ 15/ /3/ 22/ /9/ 28/ 16/ /3/ 23/ 11/ 29/ 17/ /5/ 23/ 11/ /1/ 19/ /7/ 26/ 13/ /1/ 20/ /7/ 28/ 16/ /4/ 22/ 10/ 28/ 16/ /6/ 24/ 12/ 31/ 18/
10 11/ 1 2/ 4/ 6 7/ 9 10/ 12/ 2 3/ 5/ 6/ 8/ 10 11/ 1/ 3 4/ 6 7/ 9/ 11 12/ 2 3/ 5/ 7 8/ 10/ 11/ 1/ 3 4/ 6/ 7/ 9/

Deal Merits:
 What catalyst or key initiatives by management will drive revenues or earnings to be higher than what
the market expects?
 - Growth in demand for EV batteries shown through increase in EV sales YoY.
- Agreement with Ford to supply lithium from 2026 to 2030.
- Strong 2022 Sustainability Report with water usage, emissions, DE&I.
- Reduction in Lithium prices.
- Includes expansions at Silver Peak, La Negra, Kemerton, Qinzhou, and Meishan.

Deal Risks:
 Related to Business:
o Development of non-lithium battery technologies
o Change in raw materials prices
 Related to Financial:
o Exposed to fluctuations in currency exchange rates, which may adversely affect the company's
operating results and net income.
o Will need a significant amount of cash to service the company's indebtedness and ability to
generate cash depends on many factors beyond control
o Changes in, or the interpretation of, tax legislation or rates throughout the world could
materially impact the company's results.